Nissan's CEO has opted to end merger discussions with Honda, citing Honda's proposal for Nissan to become a subsidiary as incompatible with their initial vision of a merger of equals. The decision comes after months of speculation and a proposed timeline for negotiations and the establishment of a holding company.
Nissan CEO Makoto Uchida has reportedly informed Honda CEO Toshihiro Mibe that he intends to end merger discussions. Sources familiar with the talks reveal that the decision stems from Honda 's proposal for Nissan to become its subsidiary, a condition that contradicts the initial vision of a merger of equals.
This development follows months of speculation surrounding a potential alliance between the two Japanese automakers, which began late last year amid reports of Nissan's financial struggles.Rumors suggested a timeline for the merger, with negotiations aimed for completion in June 2025 and the establishment of a holding company in August 2026, leading to both Nissan and Honda being delisted from the stock exchange. However, the recent shift in stance by Nissan, reportedly driven by the perceived imbalance of power in Honda's proposal, has cast doubt on the future of this potential union.An unnamed source close to the discussions confirmed that Nissan has reached a consensus that the talks cannot proceed under the current proposal and will formally announce its withdrawal from the merger negotiations at a board meeting preceding its third-quarter earnings announcement next week. The decision highlights a growing divide between the two companies regarding their vision for a potential partnership. While Honda reportedly expressed concerns about Nissan's financial stability and its potential impact on the overall holding company, Nissan remained steadfast in its desire for an equal footing within the merged entity.
MERGERS & ACQUISITIONS AUTOMOTIVE INDUSTRY JAPANESE COMPANIES NISSAN HONDA CEO FINANCIAL CRISIS
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