Japanese automakers Honda Motor and Nissan Motor may halt their discussions on business integration, reports the Asahi Shimbun, citing statements from several sources, as noted by Interfax-Kazakhstan.
According to them, Honda proposed to Nissan the idea of making it a subsidiary. However, Nissan strongly opposed this. Previously, it was planned that both automakers would operate as "subsidiaries" under a single holding company.
It is expected that the boards of directors of Honda and Nissan will meet on Wednesday to discuss the potential cessation of negotiations.
The companies signed a memorandum of understanding regarding business integration at the end of December. If they merge, a third-largest automaker by global sales could be created.
Nissan's stock price fell by 4.9%, while Honda's surged by more than 11% during trading on Wednesday.
It is worth noting that at the end of 2024, Japanese automakers Honda Motor and Nissan Motor informed the Government of Japan about plans to initiate merger negotiations. Media reports indicated that Nissan is seeking a cornerstone investor. “We have about 12-14 months to survive,” stated one source close to Nissan to FT.