Honda and Nissan announced merger plans in December 2024, and the process has been progressing as per schedule. The merger will also include Mitsubishi, and both companies aim to reach a definitive agreement by June 2025. Unlike Honda, Nissan’s 35.7 percent stake is currently owned by the French brand Renault. According to Kyodo News and Bloomberg, Honda prefers to merge with a wholly owned Nissan and has asked if it could buy back Renault’s stake for around USD 3.6 billion, based on current exchange rates.

• Foxconn was interested in buying Renault’s stake in Nissan: sources
• Renault had said it would “consider all options” based on best interests
• Post merger, Honda and Nissan would continue to exist separately

Honda-Nissan Merger: Latest update

This doesn’t seem to be a personal grudge between the carmakers. The merger could potentially create one of the world’s largest automotive groups. Honda’s main concern in asking Nissan to buy back its stake from Renault is the possibility that Renault’s share could be acquired by some unknown third party during the merger process, which might put things off-track. Recently, there were rumours that Foxconn was interested in purchasing Renault’s stake in Nissan.

The official press release sent in December did not mention Renault, despite its considerable stake in Nissan; this could also suggest that Renault may not be keen on the Honda-Nissan deal. A few days later, Renault announced it would 'consider all options' based on the best interests of the group and its stakeholders.

While merger talks are ongoing, it’s important to note that both key brands, Honda and Nissan, are still evaluating the feasibility of the deal and if it’s even viable. A decision is expected by the end of this month. This means any action by Nissan to buy out Renault’s stake will not take place until then.

If the merger proceeds, a new holding company will be created. As previously reported, Honda and Nissan will continue to operate separately with their individual product ranges. However, technology and platforms will be shared, with Mitsubishi also expected to be part of the alliance.