Staff Reporter
Japanese automakers Honda and Nissan announced on Thursday that they are halting merger discussions.
This decision puts an end to speculation surrounding a potential $60 billion deal that would have established the world’s third-largest auto manufacturer by sales volume.
Despite the termination of merger discussions, Honda and Nissan emphasized their commitment to “collaborate within the framework of a strategic partnership.”
This partnership is focused on advancing technologies in intelligence and electrified vehicles, aiming to position both companies for success in the evolving automotive landscape.
Recent reports from Reuters indicated that Nissan was likely to retract from the merger talks, paving the way for this latest announcement.
The proposed merger between Nissan and Honda has collapsed, attributed to Nissan’s “pride and denial” and its reluctance to close factories.
According to a Reuters report, Honda’s initiative to make Nissan a subsidiary further complicated the deal, alongside Honda’s push for deeper staff reductions at Nissan.
Discussions for the merger began in December, with the goal of creating the world’s third-largest automaker by vehicle sales.
The negotiations were expected to conclude by June. During a December news conference, Honda CEO Toshihiro Mibe stated that the merger aimed to enhance intelligence sharing and resource allocation while delivering economies of scale and maintaining brand integrity.
Nissan’s stock experienced a significant surge, jumping 24% on December 18, following media reports about the merger—marking the best single-day performance since at least 1985. This merger proposal came shortly after Nissan reported disappointing second-quarter results, announcing plans to cut 9,000 jobs and reduce global production capacity by 20%.
In contrast, Honda released its third-quarter financial results on Thursday, reporting revenue of 5.53 trillion yen (approximately $36.4 billion), reflecting a 1.4% increase year on year. Operating profit rose to 397.8 billion yen, a 4.6% gain compared to the same period last year.
