Nissan to Announce Direction of Potential Merger with Honda by Mid-Feb

According to a company spokesperson on Friday, Nissan Motor is delaying the plan from the end of January in order to announce the direction of its potential merger with Honda Motor by mid-February.

In a historic turn for Japan's auto industry, the two Japanese automakers have been in discussions to investigate a merger by 2026. This underscores the threat that Chinese electric vehicle manufacturers pose to the world's long-dominant legacy automakers.

"The two companies planned to decide on the direction of the management integration by the end of January, but Integration Preparatory Committee discussions are ongoing," a spokesperson stated.

The companies stated in December that their goal was to conclude negotiations by June and establish a holding company by August 2026, at which point the shares of both businesses would be delisted.

Renault, Nissan's longstanding alliance partner, has previously stated that it is amenable to the merger in theory. 36% of Nissan is owned by the French carmaker, including 18.7% through a French trust.

Separately, sources told Reuters last week that Mitsubishi Motors, a smaller alliance partner, was thinking about opting out of the proposed merger.