Honda shares fall 2% after media reports on potential merger with Nissan
Posted: Dec 18, 2024
- Honda Motor shares fell 2% following report of potential merger with Nissan Motor
- Both companies considering operating under a holding company
- Report from Nikkei newspaper suggests signing memorandum of understanding soon
- Nissan is top shareholder in Mitsubishi Motors, may also be brought under holding company
- Potential merger impacting stock prices, $HMC and $NSANY
- Nissan shares surged 22% following reports of a potential merger with Honda
- Rumors suggest the two automakers will operate under a holding company and sign a memorandum of understanding
- Mitsubishi Motors, in which Nissan is the top shareholder with a 24% stake, may also be brought under the holding company
- The combined enterprise would equate to over 8 million vehicle sales annually
- Nissan stated that while they are considering possible collaborations with Honda and Mitsubishi, no decisions have been made
- A tie-up would make the three automakers one of the world's largest, but still below Toyota and Volkswagen
- Honda and Nissan entered into a strategic partnership earlier in the year for shared automotive components and software
- This would be the largest automotive industry merger since Fiat Chrysler joined with PSA Groupe in 2021
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