Honda Motor Co. and Nissan Motor Co. have decided to terminate discussions on a potential merger, ending the restructuring attempt to create one of the world’s largest automotive groups.
Both companies held board meetings on Thursday, where they agreed to withdraw the basic agreement signed in December 2024 and officially end merger discussions, according to local media reports.
Honda will hold an online press conference at 4:50 p.m. local time (0750 GMT) to discuss the details of the decision.
The two companies initially focused on forming a holding company that would oversee both brands.
However, the negotiations stalled over the shareholding structure as tensions escalated when Honda proposed making Nissan its subsidiary, an idea Nissan strongly opposed.
According to the reports, Honda has been pushing Nissan to accelerate its restructuring efforts.
In November 2024, Nissan announced plans to cut 9,000 jobs worldwide and reduce its global production capacity by 20 per cent after reporting a more than 90 per cent drop in net profit.
(Xinhua/NAN)
