Honda, Nissan Begin Talks For $54B Merger To Create Third-Largest Carmaker

Honda and Nissan signed a memorandum of understanding to initiate talks for a potential merger that could create the world's third-largest carmaker. The merger, which could include Mitsubishi Motors, aims for a definitive agreement by June and completion by 2026. If successful, the merger would form a holding company valued at $54 billion, or $58 billion if Mitsubishi joins. Honda CEO Toshihiro Mibe emphasized the need for global competitiveness amid rising Chinese competition, while Nissan CEO Makoto Uchida highlighted economies of scale. Analysts cite challenges, including internal resistance and external approvals.