Honda Crafts Nissan Rescue Plan That Plays Out Over Years (2)

Honda Motor Co. sketched plans for a drawn-out deal that amounts to an acquisition of Nissan Motor Co., as Japan’s automakers struggle to keep up in an increasingly competitive global car industry.

The two announced a tentative agreement Monday to set up a joint holding company that will aim to list shares in August 2026. While their executives called the transaction a merger, Honda will take the lead in forming the new entity and nominate a majority of its directors. Nissan’s partner Mitsubishi Motors Corp. may also participate in the deal.

Nissan’s shares fell as much as 7.3% at ...