Nissan is ending talks with Honda on a £46 billion merger, which was aimed at creating the world’s third-largest carmaker. The deal would have helped both companies invest more in electric vehicle (EV) technology as traditional manufacturers faced increased competition from China-based EVmakers.
However, tensions over the perceived imbalance between the parties led to the talks’ collapse. Nissan is now searching for a new partner to help it navigate its shift towards EVs.
The Japanese automaker’s search for a new partner could extend beyond the automotive sector to technology companies like Taiwan’s Hon Hai Precision Industry (Foxconn). A Foxconn tie-up was first reported, but some board members are reportedly open to a US tech partner instead.
Nissan’s share price rose 7.3% on Thursday, while Honda’s fell 4%. The company’s weak profit outlook and stock price have impaired its negotiating position, according to CreditSights.
A takeover would limit existing shareholders’ gains from any recovery in Nissan’s performance, adding complexity to the situation. Renault’s stake in Nissan will also complicate matters, as the carmaker has struggled with years of turmoil and slumping profits.
Source: https://www.theguardian.com/business/2025/feb/06/nissan-preparing-to-pull-out-of-merger-talks-with-honda