Japanese automakers Honda Motors and Nissan Motors have decided to end their merger negotiations.
This was announced following the board meetings of both companies on February 13. The reason for the decision was disagreements over the merger structure. Specifically, Nissan rejected Honda’s proposal to make its company a subsidiary, which led to further tensions between the two giants, according to NHK.
It is currently unknown whether the companies will continue to cooperate in areas such as research, software development, or electric vehicles. Earlier, in late December, Honda and Nissan officially began merger talks, also considering the involvement of Mitsubishi Motors, in which Nissan is a shareholder. The plan was for Honda to dominate the new structure, controlling more than half of the board and having the right to appoint the CEO of the combined company.
Initially, a decision on the merger was to be made by the end of January, but the deadline was later extended to mid-February. The negotiations were based on a holding company model, but the parties failed to agree on key terms, such as the level of integration.
Additionally, Honda’s leadership expressed dissatisfaction with the pace of Nissan’s optimization plan and proposed making Nissan a subsidiary. This faced strong opposition within Nissan, and on February 6, its leadership visited Honda’s headquarters to announce the end of negotiations.
It was also revealed that Mitsubishi Motors had announced in January that it would not participate in the possible merger, including the transformation into a subsidiary of the new holding company.
