OR Honda and the Nissan may unveil today, Monday, the merger agreement to set up a joint holding company, a person familiar with the matter told Reuters, with the goal of reaching a deal by June 2025.

The merger will create the third largest car group in the world after the Toyota and the Volkswagenas major automakers face increasing challenges from Tesla and Chinese rivals.

Honda, Japan’s second-largest automaker after Toyota, has a market capitalization of more than $40 billion, while third-ranked Nissan is valued at about $10 billion.

The Japanese automakers will hold a joint press conference after board meetings on Monday, which is expected to be attended by Mitsubishi Motorsa Nissan partner, according to two sources, who spoke on condition of anonymity.

OR Honda and the Nissan they aim to complete the deal by June 2025 and form a holding company in August 2026, when its shares will go public while Honda and Nissan’s shares will be delisted, the same sources said.

Honda will control a majority of the holding company’s board, while appointing the chief, the source added.

The merger of the two historic Japanese brands will mark the biggest shakeup in the global auto industry since Fiat Chrysler Automobiles and PSA merged in 2021 to create Stellantis in a $52 billion deal.

Mitsubishi Motors’ involvement would push the Japanese conglomerate’s global sales to more than 8 million cars, surpassing the current No. 3 group, South Korean Hyundai and Kia.

The two companies said in March that they were considering cooperation on electrification and software development. They agreed to conduct joint research and expanded cooperation with Mitsubishi Motors in August.

Last month, Nissan announced plans to cut 9,000 jobs and 20% of its global production capacity after falling sales in its key markets of China and the US.

Honda also reported worse-than-expected earnings due to declining sales in China.