The planned merger between Japanese carmakers Honda and Nissan is in jeopardy due to widening disagreements between the two companies. Nissan's stock decline and anonymous executive comments highlight the current impasse. Possible reasons for the breakdown include Honda's demand for Nissan to buy back its stake from Renault and Honda's reported proposal to acquire Nissan outright, upsetting potential Nissan partners. Mitsubishi, a major stakeholder in Nissan, has already withdrawn from the merger.
The potential merger between Japanese auto giants Honda and Nissan appears to be facing significant challenges, according to a recent report by Nikkei Asia. The report highlights growing discrepancies between the two carmakers, particularly as Nissan 's stock value has plummeted by 4% in the past week. Anonymous executives from both Honda and Nissan have acknowledged the current impasse, although the precise nature of the disagreement remains shrouded in secrecy.
One potential source of contention stems from Honda's demand for Nissan to repurchase its 35% stake in the company from French automaker Renault. This stake is estimated to be worth approximately P202.8 billion, a substantial sum that may prove financially burdensome for Nissan at present. The Yokohama-based company has grappled with declining global sales and downsizing efforts in several markets in recent years, prompting these merger discussions in the first place.Adding further complexity to the situation, rumors persist that Honda has proposed acquiring Nissan outright rather than pursuing a merger. An anonymous Nissan executive reportedly expressed dismay at Honda's suggestion to transform Nissan into a subsidiary rather than an equal partner. Last month, Reuters reported that Mitsubishi, which holds a 24% stake in Nissan, had withdrawn from the Nissan-Honda merger months before its anticipated completion. Mitsubishi had initially considered joining the merger to strengthen the partnership and establish the third-largest automotive conglomerate globally. The original plan envisaged Nissan and Honda establishing a holding company first, with Mitsubishi subsequently joining the venture.While the report indicated that Mitsubishi would continue to engage in Nissan-Honda discussions, its primary focus now lies in expanding its operations in Southeast Asia. With Nissan and Honda anticipating the finalization of their merger by June of this year, the coming months will undoubtedly reveal the true extent of their commitment to this partnership.
Honda Nissan Merger Automotive Business Deal
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Honda-Nissan merger could kick off with a full-size SUVA Honda executive raised the idea of a full-size SUV collab at CES 2025
Read more »
Nissan Halts Merger Talks With Honda, Raising Concerns About TurnaroundNissan and Honda have ended merger discussions, abandoning a deal that would have created the world's third-largest automaker. Investor confidence in Nissan plummeted, while Honda's stock surged. The decision raises questions about Nissan's ability to navigate its turnaround strategy without external support.
Read more »
2025 Honda Civic vs. 1994 Honda Accord: Size ComparisonThis article compares the dimensions of the 2025 Honda Civic RS e:HEV to the 1994 Honda Accord 2.0 EXi, revealing that the current Civic is actually larger in all aspects.
Read more »
Honda incorporates ‘ACTION’ in road safetyHONDA, through the Honda Foundation, Inc. (HFI) and Honda Philippines, Inc. (HPI), has established a significant partnership with Tamang Ride PH, an
Read more »
Perplexity AI Proposes Merger with TikTok US, Offering US Government Stake in New EntityPerplexity AI, a US search engine startup, has submitted a revised proposal to TikTok's Chinese parent company, ByteDance, suggesting a merger with TikTok US and the creation of a new entity. The proposal includes a potential stake for the US government, up to 50%, in the new company following a future IPO.
Read more »
Perplexity AI Proposes US Government Stake in TikTok MergerIn a bid to address national security concerns surrounding TikTok, Perplexity AI has proposed a merger with TikTok's US operations, offering the US government a potential stake of up to 50 percent. The proposal, which aims to dilute Chinese ownership, is under consideration by TikTok's parent company, ByteDance.
Read more »