Official announcement of merger between Honda and Nissan in Japan..."A goal for 2026".

Honda, the second-largest Japanese carmaker, and Nissan Motor, the third-largest, have decided to start negotiations with the aim of merging in 2026.

The two companies each held a board meeting today and decided to pursue management integration in the form of a new holding company to be established as a publicly traded company in August 2026.

If the integration is completed, the new company will become the world's third-largest finished car group, beating Hyundai Motor Group in Korea.

Through the merger, the two companies plan to integrate R&D functions, streamline production bases, and achieve cost-efficiency, and achieve synergies in areas such as hybrid cars and electric vehicles.

The head of the new holding company will be appointed from Honda's nominated directors, and the two companies will be delisted as subsidiaries of the holding company, respectively.

The negotiations aim to reach a final agreement in June next year.

As of last year, Honda ranked seventh in the world with 3.98 million units and Nissan eighth in the world with 3.37 million units.

The two companies combined are 7.35 million units, below the 11.23 million units of No. 1 Toyota and 9.23 million units of No. 2 Volkswagen, but above the 7.3 million units of No. 3 Hyundai Motor Group.

Mitsubishi Motors, Nissan's largest shareholder, also plans to decide in January next year whether it will join the merger of the two companies.