9:59 am, February 13, 2025
A proposed multi-billion-pound merger between Honda and Nissan has fallen through after the carmakers were unable to agree terms.
The $58bn deal, which also included Mitsubishi as a junior partner, would have created in the world’s third biggest carmaker but bosses have been unable to reach an agreement.
Car Dealer reported last week that negotiations were on the brink of collapse talks as a result of ‘different agendas’ from the two firms.
According to multiple media reports, Honda was ‘aggressive’ in wanting to be the senior partner in any merger, effectively turning Nissan into a ‘fully owned subsidiary’.
Now, the two Japanese brands have confirmed that they are walking away from the merger but pledged to work together to develop EV technology.
‘During the discussions between the two companies, various options were considered regarding the structure of the business integration,’ Nissan and Honda said in a joint statement.
‘Honda proposed changing the structure from establishing a joint holding company, where Honda would appoint the majority of directors and the chief executive officer based on a joint share transfer as initially outlined in the memorandum of understanding (MOU), to a structure where Honda would be the parent company and Nissan the subsidiary through a share exchange.
‘As a result of these discussions, both companies concluded that, to prioritise speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the MOU.
‘Going forward, Nissan and Honda will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles, striving to create new value and maximise the corporate value of both companies.’
Bosses had been hoping that the merger would help the companies see off the threat of Chinese disruptors like BYD.
However, many analysts raised questions about the advantages of such a deal, given that so many of the brands’ existing models already overlap.
