Honda sketched plans for a drawn-out deal that amounts to an acquisition of Nissan, as Japan’s automakers struggle to keep up in an increasingly competitive global car industry.
The two announced a tentative agreement Monday to set up a joint holding company that will aim to list shares in August 2026. While their executives called the transaction a merger, Honda will take the lead in forming the new entity and nominate a majority of its directors. Nissan’s partner Mitsubishi Motors may also participate in the deal.
Nissan’s shares fell as much as 7.3% at the market open in Tokyo on Tuesday. Honda rose 14.4%.
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