Honda Motor Co. and Nissan Motor Co. have confirmed they are discussing a potential merger that may also involve Mitsubishi Motors Corporation.
Honda (TYO: 7267) said it had signed a memorandum of understanding (MOU) to explore the possibility of Mitsubishi (7211.T) participating in Honda’s proposed “business integration” with Nissan (TYO: 7201).
“Mitsubishi Motors aims to reach its conclusion by the end of January 2025 on the participation or involvement in the business integration between Nissan and Honda,” Honda said in a statement.
The three Japanese automobile manufacturers had agreed to proceed with discussions based on the framework established in a MOU signed by Nissan and Honda on 1 August regarding a strategic partnership focused on intelligence and electrification.
“Mitsubishi Motors has been participating in this framework, and the three companies have been proceeding with discussions,” Honda said.
The merger would create the world’s third largest auto maker behind Germany's Volkswagen Group (ETR: VOW3) and Japan's Toyoto Motor Corporation (TYO: 7203) when ranked by revenue.
Nissan Director, President, CEO and Representative Executive Officer Makoto Uchida said Honda and Nissan would study the creation of significant synergies between the two companies in a wide range of fields.
“We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base,“ Uchida said.
Honda Director and Representative Executive Officer Toshihiro Mibe said it was hoped that Mitsubishi’s participation in the merger discussions would lead to “further social change” and “create new value in mobility”.
Mitsubishi President and CEO Takao Kato said: “In an era of change in the automotive industry, the study between Nissan and Honda about a business integration will accelerate synergy maximization effects, bringing high value also to the collaborative businesses with Mitsubishi Motors.”
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