According to the memorandum of understanding signed by Honda Motor and Nissan Motor, the share transfer ratio of the merger will be determined in June next year based on the average stock price, asset size, and analysis results of external institutions during a certain period. In the merger negotiations between Honda Motor and Nissan Motor, the two companies will discuss merging their businesses into a new holding company. Taking into account the average price and assets of both parties' stocks, the merger ratio negotiations between Honda Motor and Nissan Motor may start from 5 to 1.
"Nihon Keizai Shimbun" assumes that the new holding company after the merger will not raise new capital and Mitsubishi Motors will also become part of the new company. When assigning a market value of 1 to Nissan Motor, Honda Motor's market value will be between "4.8 and 5.1" and Mitsubishi Motors will be 0.4.
According to predictions, if the shares of the new company after the merger are 100%,Honda Motor will account for "77% to 78%" of the total shares, Nissan Motor will account for "15% to 16%" of the total shares, and Mitsubishi Motors will account for "6% to 7%".
If the operational integration can be successfully achieved, Honda and Nissan are expected to delist in August 2026.
Currently, Honda Motor's market value is US$44.484 billion and Nissan Motor's is US$23.616 billion. If the two complete the merger, this will be the largest transaction in the automotive industry since FCA and PSA merged to form Stellantis, the world's fourth largest automobile group, in 2021.
Moreover, in 2023, Nissan and Honda's global sales were 3.37 million vehicles (ranked seventh in the world) and 3.98 million vehicles (ranked eighth in the world) respectively.
After the merger of the two companies,It may surpass Hyundai, Kia and Stellantis Group to become the world's third largest automobile group after Toyota and Volkswagen.