The total sales of Nissan and Honda is more than $191bn (£152bn), said Nissan’s chief executive, Makoto Uchida.
In March, the two Japanese car makers agreed to explore a strategic partnership for electric vehicles (EVs).
“The talks started because we believe that we must build up capabilities to fight them, including the current emerging forces, by 2030. Otherwise we will be beaten”, said Mr Mibe.
He added that the deal was not a bailout of Nissan, which has been struggling with falling sales.
In November, Nissan said it will cut around 9,000 jobs as it slashes global production to tackle a drop in sales in China and the US. The cuts mean its global production will be reduced by a fifth.
Nissan, once a symbol of Japan’s car making strength, has spent the past few years trying to regain its footing after the arrest of longtime chief executive Carlos Ghosn. Mr Ghosn faced charges of financial misconduct when he fled Japan in 2019, and is currently the subject of an Interpol Red Notice, which is a request to law enforcement worldwide to find and arrest a person. Mr Ghosn, currently in Lebanon, told reporters in December that Nissan’s merger plans were an act of panic and desperation.
Mr Mibe said that any merger would be dependent on the turnaround of Nissan.
The merger, which would include Mitsubishi – of which Nissan is the biggest shareholder- would allow all three companies to share resources against other electric vehicle competitors such as Tesla. Honda and Nissan agreed in March to cooperate in their EV businesses, and in August deepened their ties, agreeing to work together on batteries and other technology.
However, any deal is likely to come under intense political scrutiny in Japan as it may result in job cuts, whilst Nissan is likely to unwind its alliance with French auto firm Renault.