An analytical model of highly nonlinear oscillations occurring during a coalescence of two magnetic flux ropes, based upon two-fluid hydrodynamics, is developed. The model accounts for the effect of electric charge separation, and describes perpendicular oscillations of the current sheet formed by the coalescence. The oscillation period is determined by the current sheet thickness, the plasma parameter β, and the oscillation amplitude. The oscillation periods are typically greater or about the ion plasma oscillation period. In the nonlinear regime, the oscillations of the ion and electron concentrations have a shape of a narrow symmetric spikes.