The ongoing discussions surrounding a potential Honda-Nissan merger are taking an interesting turn. Renault currently holds a significant 35.7% stake in Nissan, but Honda reportedly isn’t on board with this arrangement.
Instead, the Japanese automaker is pushing for a merger with a fully independent Nissan and has proposed that Nissan repurchase Renault. Based on current exchange rates, such a move would cost approximately $3.6 billion.
Caught Between a Rock And a Hard Place
This isn’t about rivalry between automakers. As Bloomberg reports, Honda is primarily concerned about the possibility of Renault’s stake being sold to an unexpected third party during the merger talks, potentially derailing the process.
Honda’s concerns are understandable—rumors previously suggested that Foxconn might be eyeing Renault’s stake in Nissan. With the potential merger poised to create one of the largest automotive alliances in the world, Honda seems intent on ensuring a smooth and controlled transition.
Interestingly, Renault’s involvement in the Honda-Nissan deal appears uncertain. Despite Nissan’s substantial ownership of Renault, the official announcement regarding the merger did not mention Renault.
In response, Renault released a brief statement indicating it would “consider all options in the best interest of the Group and its stakeholders,” leaving its position suspicious. According to Bloomberg, both Honda and Nissan have refrained from commenting publicly on the matter.
What’s Next?
At this stage, Honda and Nissan are still evaluating the feasibility of their merger. A final decision is expected by the end of January. Should they proceed, more detailed plans to solidify the partnership would be implemented by late 2026.
However, any effort to buy Renault’s stake will likely not begin until the merger’s viability is confirmed. Even then, questions remain about whether Nissan has the financial capability to execute such a buyback.
If the merger goes forward, the plan reportedly includes creating a new holding company similar to Stellantis.
Honda and Nissan would maintain separate brands and vehicle lineups but collaborate on shared platforms and technologies. Mitsubishi, another member of the long-standing Nissan-Renault–Mitsubishi alliance, has expressed interest in joining the newly formed conglomerate but has yet to make a formal commitment.
The outcome of these negotiations will redefine the global automotive landscape. Thanks for reading till the end. If you like this type of content, keep following arabwheels blog. Let us know what you think in the comments below.