MUSCAT : The companies signed a memorandum of understanding on Monday, with Mitsubishi Motors, a smaller member of the Nissan alliance, also joining the discussions to integrate their businesses. Honda President Toshihiro Mibe confirmed that the merger would unify operations under a joint holding company, initially led by Honda, while preserving the distinct identities of the brands.

Honda President Toshihiro Mibe confirmed that the merger will be finalized by June and complete the merger by August 2026.

If successful, the merger would create an automotive titan capable of producing approximately 8 million vehicles annually, trailing only Toyota and Volkswagen. The deal is expected to strengthen the companies’ position in electric vehicles (EVs), autonomous driving, and global competitiveness.

Nissan’s partnership with Renault and Mitsubishi, coupled with Honda’s expertise, could result in a combined market valuation exceeding $50 billion. While Nissan brings decades of experience in EV batteries and hybrid technology, Honda could gain access to Nissan’s large SUVs, further diversifying its portfolio.

The announcement comes as Japanese automakers face mounting pressure to innovate. Industry insiders say the merger could help them catch up with competitors who are already leading the EV revolution.

The move has sparked mixed reactions. Former Nissan Chairman Carlos Ghosn, speaking from Lebanon, labeled the merger a “desperate move.” Meanwhile, investors showed optimism, with Nissan’s shares rising 1.6% and Honda’s jumping 3.8% following the news.

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