Nissan will reportedly name off talks for a merger with Honda as the 2 Japanese carmakers couldn’t attain a consensus on the phrases of the merger deal, Reuters wrote citing a Nikkei report.
Honda had sounded out Nissan about changing into a subsidiary, Reuters cited one in every of its sources as saying, nonetheless this is able to haven’t been within the spirit of the unique discussions for a merger of equals; Honda was more and more involved about Nissan’s plans to show round its fortunes.
In the meantime, Nissan additionally has a bigger threat publicity to the US-Mexico tariffs in comparison with compatriots Honda and Toyota, Reuters cited analyst Vincent Solar as saying.
The merger of the 2 Japanese carmakers was valued at greater than US$60 billion (RM265 billion), Reuters wrote, and if materialised, would have created the third-largest carmaker by gross sales, nonetheless Nissan’s struggles continued because it introduced it’s to chop 9,000 jobs and cut back manufacturing capability by 20%.
Earlier, a report yesterday by Kyodo Information wrote that Nissan and Honda had been nonetheless discussing the finer particulars of the proposed merger, following a press convention final month stating that the 2 carmakers agreed to start talks of merging below a brand new holding firm in 2026.
The 2 carmakers signed a memorandum of understanding (MoU) in December 2024 to discover the potential for a merger that will result in the establishing of the aforementioned joint holding firm, with Mitsubishi having reached a primary settlement to change into a 3rd member of the alliance.
Nissan and Honda initially had the purpose of arriving at a definitive settlement by June this 12 months, whereas stories emerged final month that Mitsubishi may not participate within the merger.
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