Honda and Nissan Announce Mega Merger for 2026, Eye Mitsubishi’s Possible Inclusion

In a game-changing development for the Japanese automotive industry, Honda and Nissan on Monday revealed their plan to merge by August 2026. The two giants signed a Memorandum of Understanding (MOU), aiming to hammer out final terms by June 2025. Here’s what we know so far:

$7 Billion Buyback to Spark Investor Excitement

• • Honda unveiled a 1.1 trillion yen (roughly $7 billion) stock buyback plan, replacing its smaller 100 billion yen ($636 million) buyback announced last month.
  • This news fueled a 15% surge in Honda’s U.S.-listed shares during Monday’s premarket session, even though Honda stock was down about 23% year-to-date before the announcement.

Mitsubishi May Join the Deal

• • Mitsubishi, partially owned by Nissan, might also become part of the merger.
  • According to a separate MOU, the final decision on Mitsubishi’s inclusion is slated for January 2025.

What’s at Stake?

• • A merged entity is set to list on the Tokyo Stock Exchange by August 2026, creating a powerhouse in the automotive world.
  • While Honda CEO Toshihiro Mibe hinted at cost-saving benefits through an optimized supply chain, he offered few specifics on factory closures or restructuring plans.

Regulatory Green Light Likely

• • Though no explicit comments have been made by regulators on the Honda-Nissan deal, Japan’s Ministry of Economy, Trade and Industry chief, Yoji Muto, noted that the government “should look favorably” on collaborations that boost competitiveness.

Why It Matters

• • The automotive sector is facing pressure from rising production costs, electrification demands, and emerging markets. An alliance of this scale could redefine the competitive landscape, potentially shaping the global industry for years to come.

Bottom Line Keep an eye on developments as Honda and Nissan negotiate the final contours of this merger. With a massive share buyback plan on the table and a possibility of Mitsubishi jumping on board, the story will likely evolve over the next year and a half—just in time to reshape the future of Japanese automaking.