Nissan and Honda refuse to merge: details of the decision

Nissan and Honda have officially ended talks to merge into a single automaker, less than two months after confirming rumors of a possible merger. In a statement, the companies said they had «agreed to terminate» a memorandum of understanding (MOU) signed in December 2024. If the merger were to go through, including Nissan-controlled Mitsubishi, the new entity would have a net worth of about $50 billion.

A merger of the two companies, including Nissan-controlled Mitsubishi, would have a net worth of about $50 billion.

Discussion of Nissan and Honda merger structure

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Company executives have held talks on the goals of the merger as well as the post-integration management structure. Honda proposed several options, including a joint holding company where it would appoint the CEO and a majority of directors. Honda also proposed an option in which it would become the parent company and Nissan would become a subsidiary.

Honda also proposed an option in which it would become the parent company and Nissan would become a subsidiary.

Reasons to back out of a deal

According to the Financial Times, in early February Honda presented Nissan with a «no-choice» offer that would have seen Nissan become its subsidiary. A majority of Nissan’s board rejected the deal at that stage, but an official announcement was not made until mid-February. The companies decided to end negotiations to «maintain the speed of decision-making and implementation of management measures amid a volatile market and the transition to electrification».

See the statement.

Future Cooperation

Despite rejecting the merger, the two companies continue to plan to work together «in a strategic partnership focused on the era of smart and electrified cars».

The story Nissan and Honda abandon merger: details of decision was first published on ITZine.ru.