The proposed deal aims to unify operations under a joint holding company, led by Honda, while maintaining the distinct identities of each brand, according to Honda's president, Toshihiro Mibe. If finalized, the merger would position the combined entity to better compete with market leaders Toyota and Volkswagen.

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Nissan and Honda, two big car companies from Japan, have announced an agreement to look into merging their businesses by creating a joint holding company.