Honda (7267 JT) and Nissan (7201 JT) announce the signing of the basic agreement to consider integration; Cos and Mitsubishi Motors (7211 JT) sign an MOU on collaborative considerations

Honda

• Cancelling buybacks scheduled between November 7th 2024 and October 31st 2025.


• To buy back JPY 1.1tln of shares.


• Synergy effect will be maximised after 2030


• Rise of Chinese automakers and new players have changed the car industry "quite a lot"; must build up capabilities to fight with them by 2030 - or will be beaten

Honda/Nissan

• Intend to set up the holding Co. in August 2026. Aim to conclude talks around June 2025.


• To delist around August 2026.


• Aiming for an operating profit over JPY 3tln, combined.


• Honda will appoint majority of the board, incl. President.

Honda/Nissan/Mitsubishi

• To explore the possibility of Mitsubishi partaking in the integration.


• Aims to reach a conclusion on this by end-January 2025.

Nissan 

• CEO: The integration will create a top class automaker with more than JPY 30tln sales


• CEO: To achieve shares growth with Honda, "our big responsibility is to carry out turnaround efforts as soon as possible"

Analysis details (08:00)

Follows sources:

• Honda and Nissan are set to announce plans for a merger, forming a joint holding company with the goal of completing the deal by June 2025, Reuters reports. The new group would become the third-largest global automaker. The holding company is expected to list in August 2026. The two automakers will likely host board meetings on Monday about the talks, and to hold a press conference around 08:00 GMT. (Reuters)

23 Dec 2024 - 07:56- Important- Source: Newswires