Japan – Months after announcing a possible major merger deal, Nissan is reportedly halting its $60b merger talks with Honda, a move that would have created the world’s third-largest automaker.
According to a Reuters report, multiple anonymous sources revealed that merger talks between the two Japanese automakers have become increasingly complicated due to growing differences.Â
Earlier, Reuters also reported that Nissan was considering calling off negotiations after Honda proposed making Nissan a subsidiary. One source stated that Nissan baulked at the idea, as it deviated from the original plan of a merger between equals.
Additionally, another source revealed that Honda, with a larger market value than Nissan, has grown increasingly concerned about its smaller rival’s progress on its turnaround plan.
While the future of the merger remains uncertain, two anonymous sources suggested that the possibility of reviving talks has not been ruled out, Reuters further revealed.
Notably, Nissan shares dropped over 4% on the Tokyo Stock Exchange, prompting a temporary trading halt after a Nikkei report claimed the automaker would exit merger talks. In contrast, Honda shares jumped more than 8%, reflecting apparent investor relief.
According to Reuters, both companies stated that the Nikkei report was not based on official information and reiterated their goal of finalising a decision by mid-February.
Nissan and Honda initially aimed to finalise their integration plans by the end of January but later postponed the decision to mid-February.
Meanwhile, Reuters reported that last month, sources indicated Mitsubishi Motors—Nissan’s smaller alliance partner—was reconsidering its involvement in the merger and might no longer join.
