Nissan-Honda Merger Dilemma: Revving into Uncertainty

Nissan is reconsidering merger talks with Honda, worth $60 billion, as growing differences emerge between the two automakers. Honda's concerns about Nissan's turnaround plan impact negotiations. The potential merger could place the companies as the world's third-largest automaker, but complications persist.


Devdiscourse News Desk | Updated: 05-02-2025 19:51 IST | Created: 05-02-2025 19:51 IST
Nissan-Honda Merger Dilemma: Revving into Uncertainty
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Nissan appears ready to withdraw from merger discussions with rival automaker Honda, sources revealed on Wednesday, jeopardizing a $60 billion union that would create the third-largest automaker globally. The talks have been hampered by escalating differences between the Japanese companies, insiders reported anonymously.

Reports indicate that Nissan balked at Honda's suggestion of it becoming a subsidiary, a change from the initially proposed merger of equals. The future of the merger remains uncertain as sources suggest the possibility of reigniting talks. Honda's substantial market valuation amplifies its apprehension over Nissan's ongoing turnaround progress.

The fallout from these stalled negotiations saw Nissan shares drop on the Tokyo Stock Exchange, while Honda's shares surged, reflecting investor sentiment. Both companies, however, stated intentions to finalize a future direction by mid-February despite the media speculation over the talks.

(With inputs from agencies.)

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