Nissan, Honda announce plans to consider merger

foxbusiness.com:

Auto expert Mike Caudill joins 'Cavuto: Coast to Coast' to discuss the likelihood of a merger between Honda and Nissan and how it could impact the brands.

Japanese automakers Nissan and Honda agreed to consider a merger and set up a joint holding company, which would create the world's third-largest automaker.

The two companies said in a statement Monday that they would seek combined sales of $191 billion and an operating profit of more than $19 billion through the potential merger.

The companies hope to wrap up negotiations around June 2025 and set up a holding company by August 2026, when both companies' shares will be delisted.

The merger talks come as both automakers struggle to compete with the largest global electric vehicle makers, including Tesla and Chinese automaker BYD.

WHAT A HONDA-NISSAN MERGER COULD MEAN FOR THE AUTO INDUSTRY AND CONSUMERS

Makoto Uchida (left), Director, Representative Executive Officer, President and CEO of Nissan Motor Corporation and Toshihiro Mibe (right), Director, President and Representative Executive Officer of Honda, hold a joint news conference on their merge (Reuters / Reuters Photos)

The merger would create the world's third-largest auto group by vehicle sales, behind Toyota and Volkswagen.

Honda, the second-biggest Japanese automaker behind Toyota, has a market capitalization of more than $40 billion, while third-ranked Nissan is valued at about $10 billion.

«Today marks a pivotal moment as we begin discussions on business integration that has the potential to shape our future,» Nissan Director, President, CEO and Representative Executive Officer Makoto Uchida said in a statement. «If realized, I believe that by uniting the strengths of both companies, we can deliver