By Maki Shiraki and Norihiko Shirouzu

TOKYO, Dec 23 (Reuters) - Honda ( HMC ) and Nissan ( NSANF )

are expected on Monday to announce the start of

business integration talks, two people familiar with the matter

told Reuters, as the carmakers strive to survive a rapidly

changing industry landscape.

The two automakers are hosting board meetings on Monday

about the talks and will later hold a joint press conference

that Nissan's ( NSANF ) alliance partner Mitsubishi Motors ( MMTOF ) is

also expected to attend, the people said.

A merger of the three Japanese brands would create the

world's third-largest auto group by vehicle sales after Toyota ( TM )

and Volkswagen, in what would be the

biggest industry-reshaping deal since the 2021 formation of

Stellantis ( STLA ).

Honda ( HMC ) and Nissan ( NSANF ) have been exploring ways to bolster their

partnership, including setting up a joint holding company, as

they face growing challenges from Tesla and Chinese

rivals, Reuters reported last week.

Honda ( HMC ), Japan's second-biggest automaker, and Nissan ( NSANF ), the

third-largest, said in March they were considering cooperation

on electrification and software development. They agreed to

conduct joint research and widened the collaboration to

Mitsubishi Motors ( MMTOF ) in August.

Last month, Nissan ( NSANF ) announced a plan to cut 9,000 jobs and

20% of its global production capacity after its sales plunged in

its key China and U.S. markets. Honda ( HMC ) also reported a

worse-than-expected earnings result due to declining sales in

China.

Forms of integration being discussed include Honda ( HMC ) supplying

hybrid vehicles to Nissan ( NSANF ) and the joint use of Nissan's ( NSANF ) car

assembly factory in Britain, Kyodo News reported on Saturday.

The companies aim to finalise the integration talks in June

2025, public broadcaster NHK reported.

French automaker Renault, Nissan's ( NSANF ) largest

shareholder, is open in principle to a deal and would examine

all the implications of a tie-up, sources have said.