05.02.2025 09:40
The merger talks initiated between Japanese automotive giants Honda and Nissan in December 2024 have hit a deadlock due to unexpected developments. Honda's proposal to fully integrate Nissan into its operations has caused surprise and discomfort within Nissan's management. This new offer deviates from the initially planned structure of a joint holding company.
The boards of Honda and Nissan are preparing to meet to evaluate the future of merger talks. Honda's proposal to fully acquire Nissan was perceived on Nissan's side as "either accept or withdraw," which complicated the merger process.
ACTIVITY IN STOCKS
Following news that the merger talks could be canceled, Nissan's shares rose by up to 7.4%, while Honda's shares increased by up to 4.2%.
THE ROLE OF RENAULT AND MITSUBISHI IS CRUCIAL
Renault, the French car manufacturer that holds a 36% stake in Nissan, demanded a higher premium for its shares in the event Honda takes control and pressured for the talks not to be prolonged. Meanwhile, it was reported that Nissan's strategic partner Mitsubishi has also been invited to participate in the merger, but has not yet made a decision.
NISSAN IS FACING 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.