Once they find a common direction, Honda and Nissan will draw up a definitive agreement to merge, including a plan to transfer shares, by June 2025. If that goes through, they will seek to get plans approved by April 2026, with the merger happening later that year.

The Renault Group holds almost 36% of Nissan, but its role in the merger remains unclear. The French group said it’s considering “all options” as talks between the Japanese brands intensify. Former Nissan and Renault boss Carlos Ghosn suggests Renault might sell its shares to Honda.

French automaker Renault , Nissan Motor's largest shareholder, is open in principle to the Japanese automaker pursuing merger talks with peer Honda Motor , two people familiar with the matter said.

Renault has cautiously weighed in on the Nissan-Honda merger announcement, saying it “will consider all options based on the best interest of the Group and its stakeholders.” The French carmaker said in a3

Following a report that Honda is looking to merge with Nissan comes word that Foxconn, the Taipei, Taiwan-based electronics manufacturer best known for assembling millions of Apple iPhones per year, is interested in acquiring Renault’s remaining equity in Japan’s number-three automaker.

Honda did not respond to Business Insider's request for comment. Honda CEO: Merger is not a Nissan rescue. Honda's shares had initially fallen when news first broke of the merger

Key Takeaways Moody's gave a positive review of the potential merger of Honda and Nissan.Analyst Dean Enjo wrote that the deal would be "credit positive" if done correctly.Former Nissan CEO Carlos Ghosn warned Nissan would face "carnage" if the combination went through.