From Morningstar: 2024-12-24 04:18:46

Honda (7267) and Nissan (7201) plan to integrate by June 2025, forming a holding company with listed shares in August 2026. Nissan’s share price rose 25% in the past week, rebounding from a quarterly loss. Honda will buy back £5 billion of its shares. The merger aims to compete in the EV market, selling 7.5 million vehicles annually, but may face challenges from Tesla and Chinese EV manufacturers.

The integration could create the world’s third-largest auto group, targeting revenue of JPY 30 trillion and operating profit of over JPY 3 trillion. Details include standardizing platforms, cutting costs, and investing in EVs. Renault, Nissan’s largest shareholder, could benefit from a stronger Nissan under this agreement. Morningstar does not hold shares in the mentioned companies.



Read more at Morningstar: Honda and Nissan Start Merger Talks, Both Stocks…