According to the Asahi newspaper on Thursday, Nissan CEO Makoto Uchida informed Honda CEO Toshihiro Mibe that he plans to terminate integration negotiations.
After disputes over the inherent power disparity between the two major automakers resulted in a standstill, Honda Motor Company’s proposal to acquire Nissan Motor Company is quickly failing.
According to the Asahi newspaper on Thursday, Nissan CEO Makoto Uchida informed Honda CEO Toshihiro Mibe that he plans to terminate integration negotiations.
Even though Honda isn’t immune to the increasing rivalry in the global car sector, it’s unclear how Nissan intends to get over the severe financial difficulties that initially prompted the partnership.
Following the Nikkei’s report that Nissan was pulling out of the talks, the businesses said in comments on Wednesday that they are talking about all of their options, including the potential of stepping out of the negotiations.
Nissan might be left behind if it doesn’t merge with Honda. Due to unpopular products, dwindling profits, and listless leadership, its reputation has been declining globally for decades. Honda’s market value is more than five times that of Nissan, at ¥7.6 trillion ($50 billion).
The two stated in December that they would present a framework in late January, but this has now been pushed back to mid-February. The deal would then be finalized in June, and shares of a holding company would be listed in August 2026.
On Wednesday, both reaffirmed their intention to make an announcement later this month regarding their current course.
This week, tensions arose after rumors circulated that Honda had considered buying Nissan and converting it into a wholly-owned subsidiary. That proposal, which deviated from plans to create a joint holding company that were made public on December 23, was strongly opposed by Nissan employees.
After rising 8.2% on Wednesday, Honda’s stock fell as much as 4.8% on Thursday morning. The shares of Nissan were up 2.1%.
