Posted on 06 Feb 2025
Nissan’s board of directors have reportedly rejected a merger plan with compatriot Honda, citing unacceptable terms.
The Japanese carmakers announced in December they would work to find a direction for a possible business integration by the end of January, though a definitive agreement was targeted for June. Shareholders would then vote on the plan in April 2026, with the new entity potentially listing in Tokyo in August 2026.
At the time, the companies said they intended “to continue coexisting and developing the brands held by Honda and Nissan equally,” though Honda noted it would take the lead in the new entity. The carmaker would nominate most directors and select the new company’s president or ceo.
Citing unnamed sources familiar with the matter, multiple media outlets reported the talks have been complicated by growing differences. They suggested the proposal deviated from initial plans to bring the companies under a jointly owned holding company. Instead, Nissan was to become a subsidiary of Honda, whose market value is around five times that of Nissan.
Some reports claim Honda’s “sudden aggressive” change of posture indicates an intention to exit merger talks.
The carmakers have yet to confirm the end of talks. They’ve noted they aim to finalise a future direction by mid-February.
Nissan’s share price dropped 4.87% on 5 February, while Honda’s stock rose 8.19%.
Source:Kallanish
