Published by Global Banking & Finance Review®
Posted on December 18, 2024
1 min readLast updated: January 27, 2026
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S&P analysts suggest a Nissan-Honda merger would face delays in benefits due to strategic and regional challenges, impacting credit outlooks differently.
(Reuters) - A merger between Honda and Nissan would not come with quick gains, as the automakers would first need to align their strategies while overlapping regional markets would limit the sales benefits, S&P analysts said on Wednesday.
While the potential deal would result in a $54 billion automotive company, the world's third largest, any benefits for its credit outlook would come with a delay, they wrote in a research note.
"We ... believe it will be difficult for them to produce significant effects quickly through expanding the scope of their collaboration to include batteries, software, and autonomous driving," S&P analysts said, but added the eventual impact on their creditworthiness would be significant.
A merger would likely have a negative impact Honda's standalone credit outlook, while it should positively affect that of Nissan, they added.
They also noted that while Honda and Nissan have different development strategies, they operate in similar regional markets, most notably in North America, China and Japan.
"They therefore don't complement each other much in terms of regional sales," the analysts said.
(Reporting by Boleslaw Lasocki in Gdansk; editing by Milla Nissi)
The article discusses the potential merger between Nissan and Honda and its implications as analyzed by S&P.
Challenges include aligning strategies and overlapping regional markets, which may delay benefits.
The merger could negatively impact Honda's credit outlook but positively affect Nissan's.
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