New Delhi,
A big news is coming from Japan. Two companies (Honda and Nissan), which have their own distinct and legendary identities in the world of automobiles, are now preparing to join hands together. Apart from the global market, Honda and Nissan are considering a big merger to compete with Chinese and American companies, especially Tesla and BYD, in the domestic market.
According to Reuters report, continuous talks are going on between Honda and Nissan to further improve the relationship. Both companies are considering many different aspects, including a possible merger. If both the companies come together then this joint venture can emerge as the third largest auto group in the world.
If this partnership between Honda and Nissan takes shape then the joint venture will give a new structure to the auto world. The joint merger of Honda and Nissan will create a $54 billion company with an annual production of 7.4 million vehicles. Due to which it will become the third largest automobile group in the world in terms of vehicle sales after Toyota and Volkswagen.
Talks between Honda and Nissan have been going on for a long time. Its first report was given by the Japanese newspaper Nikkei. According to the report, apart from a full merger, the two companies are also considering ways to collaborate with Mitsubishi Motors, in which Nissan will be the top shareholder with a 24% stake.
As soon as the news of the merger of Honda and Nissan came out, huge changes were seen in the shares of both the companies in the global market. While Nissan’s shares saw a jump of almost 24%, Honda’s shares took a dive of 3%. Let us tell you that the market value of Honda is 43 billion dollars which is four times more than that of Nissan.
However, no official announcement has been made by Honda, Nissan or Mitsubishi in this matter yet. Honda, Nissan and Mitsubishi said no deal has been announced by any company. Apart from this, French automaker Renault (RENA.PA), which is a major shareholder of Nissan, has also not made any information public in this regard.
