The News
Nissan and Honda signed a preliminary merger deal that would create the world’s third-largest automotive company.
The memorandum of understanding between the two car giants should lead to formal negotiations closing by June and the formation of a holding company by August 2026. Nissan has an existing alliance with Mitsubishi and the three companies combined would have a valuation of over $50 billion.
But the deal is a sign of weakness more than strength: Nissan has struggled since its former chairman was arrested in 2018 on fraud charges, and all three companies are losing ground, especially in China, to the growth of Chinese electric vehicle makers such as BYD.
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