Honda, Nissan start merger talks?

Honda and Nissan, considered giants in the global auto market, are currently exploring the possibility of establishing a holding company.

Nissan x Honda, photo from Reuters

Two auto giants set to unite?

According to a report from Reuters and Nikkei, the two groups have begun merger talks, a development that was warmly received by investors.

If these talks materialize, the two automakers could work closely on technology amid heightened competition in the sector. However, the reports said it was not clear yet if the two companies would push for a full union.

As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other's strengths, the companies said in separate statements.

The firms said they would inform stakeholders of any updates at an appropriate time.

Currently, Honda’s market capitalization is at USD 38.8 billion (around PHP 2.29 trillion), while Nissan's ay USD 7.6 billion (around PHP 448 billion).

Source: Reuters