Honda and Nissan are exploring a potential merger, according to people familiar with the matter, which would create a singular rival to Toyota in Japan and better position the combined company to face competitive challenges around the world.
Honda is considering several options, including a merger, capital tie-up or establishing a holding company, Executive Vice President Shinji Aoyama said on Wednesday, following reports overnight of talks between the carmakers. Nissan rose as much as 24% in early trading on Wednesday, while Honda's stock fell as much as 3.4%.
The two have been holding preliminary talks about a combination, said the people, who asked not to be identified because discussions are private. One option being considered is the creation of a new holding company under which the combined businesses would operate, one of the people said. The transaction could also be expanded to include Mitsubishi Motors, which already has capital ties with Nissan, the person said.
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