06.02.2025 10:10
The merger talks initiated between Japanese automotive giants Honda and Nissan in December 2024 have been canceled. Nissan CEO Uchida informed Honda CEO Mibe that he wants to terminate the merger discussions.
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Nissan and Honda are ending their partnership talks for electric vehicle production. According to reports in the Japanese media, Nissan Motor CEO Makoto Uchida told his counterpart at Honda, Toshihiro Mibe, that he wanted to end discussions about a possible merger.
DROP IN MARKET VALUE
Following news that the merger talks could be canceled, Nissan's shares rose by as much as 7.4%, while Honda's shares increased by up to 4.2%.
DID COMPETITOR FIRMS INFLUENCE THIS?
French car manufacturer Renault, which holds a 36% stake in Nissan, demanded a higher premium for its shares in the event of Honda taking control and pressured for the talks not to be extended. On the other hand, it was reported that Nissan's strategic partner Mitsubishi was also invited to join the merger, but has not yet made a decision.
NISSAN IS STRUGGLING WITH FINANCIAL DIFFICULTIES
Nissan has been going through tough times due to a decline in its financial performance recently. In the first half of the 2024 fiscal year, operating profit fell by 90%, and net income decreased by 94%. This situation has led the company to seek new strategies to strengthen its position in the market. The merger talks between Honda and Nissan remain uncertain, and developments that could have significant impacts on the automotive industry are being closely monitored.
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