Japanese automakers Honda and Nissan announced plans to join forces, forming world's third-largest automaker by sales as the industry undergoes dramatic changes in its transition away from fossil fuels.The two companies said they had signed a memorandum of understanding on Monday and that smaller Nissan alliance member Mitsubishi Motors also had agreed to join the talks on integrating their businesses. "We anticipate that if this integration comes to fruition, we will be able to deliver even greater value to a wider customer base," Nissan's CEO Makoto Uchida said in a statement.News of a possible merger surfaced earlier this month, with unconfirmed reports saying that the talks on closer collaboration partly were driven by aspirations of Taiwan iPhone maker Foxconn to tie up with Nissan, which has an alliance with Renault SA of France and Mitsubishi.A merger could result in a behemoth worth more than $50 billion based on the market capitalization of all three automakers.

Nissan, Honda plan merger

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