Honda and Nissan are expected to discuss a plan for Honda to own a majority stake in a holding company the two Japanese automakers plan to set up in summer 2026 for their business integration, which is highly likely to be decided on the basis of factors including market capitalization of the companies. Currently, Honda's market capitalization is far larger than Nissan's.
Nissan's faltering business performance could be a hurdle to the planned integration, and there may be twists and turns depending on the course of the two firms' integration talks, industry watchers said.
The two companies announced on Dec. 23 the start of negotiations on unifying their operations. Mitsubishi, for which Nissan is the top shareholder, may also join the business integration talks. The integration, if realized, would create the third-largest automobile group in the world in terms of vehicle sales by volume, after Japan's Toyota group and Germany's Volkswagen group.
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