The merger of automotive giants Honda and Nissan has been canceled.

The merger of automotive giants Honda and Nissan has been canceled.

13.02.2025 13:00

Japanese automotive giants Honda and Nissan have officially announced the cancellation of their merger plans, which they had announced in December 2024. The companies stated that they mutually agreed to terminate the memorandum of understanding they had signed. If the merger had taken place and included Mitsubishi, which is under Nissan's control, the net value of the new entity would have been approximately 50 billion dollars.

The management teams of the companies discussed in detail the goals they aimed to achieve through the merger and the structure post-integration. Honda presented various options, such as the establishment of a joint holding company where the CEO and the majority of board members would be appointed by Honda. Additionally, a structure was proposed where Honda would be the parent company and Nissan would be a subsidiary. These proposals were rejected by the majority of the Nissan board of directors.

COOPERATION IN ELECTRIC VEHICLES WILL CONTINUE

The companies decided to conclude the merger talks, emphasizing the necessity of rapid decision-making and implementing management measures as they enter the "era of electrification." However, they also added that they plan to continue their collaboration within the framework of a strategic partnership aimed at the "era of smart and electric vehicles."

NISSAN IN SEARCH OF NEW PARTNERSHIPS

Nissan announced in November that it would lay off 9,000 employees and reduce its global production capacity by one-fifth. The company is facing challenges in the U.S. and Chinese markets. Analysts suggest that Nissan may seek a new partner to strengthen its financial position and collaborate in technology. One of these potential partners could be Foxconn, a Taiwanese electronics manufacturer that assembles Apple products. Foxconn stated that it is open to collaboration with Nissan but has no intention of acquiring it. Additionally, it has been reported that Foxconn is considering purchasing Renault's stake in Nissan.

HONDA FOCUSING ON OTHER PROJECTS

Honda continues to develop electric vehicles under the technology-focused Afeela brand in collaboration with Sony. It also plans to reintroduce the Prelude model. These initiatives are part of Honda's future strategies. The conclusion of the merger talks between Honda and Nissan seems likely to lead both companies to reassess their future strategies. Particularly, it is probable that Nissan is in search of new partnerships to strengthen its financial position and enhance its competitiveness.

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