A multi-billion dollar merger between Honda and Nissan has collapsed after the two Japanese carmakers failed to agree on key terms. The deal aimed to create an auto group worth $60 billion, but negotiations ultimately stalled due to disagreements over Nissan’s role in the partnership.
Honda, which led the talks, remains a popular brand globally and produced more cars than Nissan in recent years. However, Nissan has struggled since Carlos Ghosn’s arrest in 2018, leading to a leadership crisis and cost-cutting measures, including shedding 9,000 jobs worldwide.
The companies had agreed on a strategic partnership for electric vehicles months before announcing the merger plans, with Honda seeking to build capabilities to fight Chinese competitors. The failure of the merger leaves Nissan facing an uncertain future, but a possible investor has emerged in Taiwan’s Foxconn, which may consider buying Nissan shares to collaborate with Renault and create a stronger presence.
Analysts say that any future deal for Nissan will need effective leadership that can identify synergies between both companies, manage cultural differences, and navigate the challenges of competing with dominant Chinese manufacturers.
Source: https://www.bbc.com/news/articles/cx2k1321nedo