Honda and Nissan are considering calling off their merger talks due to uncertainty surrounding the deal, according to a Japanese newspaper.
The two automakers had announced plans to merge last December and were set to conclude discussions by June this year. However, sources close to the matter say Honda’s proposal to make Nissan a subsidiary is causing issues, as Nissan opposes it.
Shares of both companies rose after news of potential merger talks collapse. Nissan shares jumped 7.4%, while Honda climbed 4.2%. The moves reflect reduced uncertainty for investors.
Analysts had said the merger was proposed due to Nissan’s financial difficulties and restructuring with Renault. However, Nissan is facing significant challenges, including declining operating profits and net income in key markets like the US and China.
The global auto industry is undergoing a transformation driven by electric vehicles, which has disrupted traditional automakers. Nissan and Honda are struggling to adapt, with Nissan’s losses growing due to its financial woes.
Source: https://www.cnbc.com/2025/02/05/nissan-and-honda-shares-rise-upon-potential-merger-talk-cancelation.html