En 
Fr 
Piero Facchin
Hits: 319
Honda – Nissan merger: A $60 billion failure
Piero Facchin
Hits: 319
Japanese automakers Honda and Nissan announced the end of their merger discussions while continuing their cooperation on electric vehicles in response to growing global competition.
This merger would have created the world’s third-largest automaker, with an estimated evaluation of around $60 billion. In a joint statement, the two companies declared that they “[translation] agreed to terminate the memorandum of understanding” signed last December regarding a potential integration.
The objective of this merger was to compete with Tesla and Chinese automakers in the electric vehicle market. However, Nissan reportedly ended the negotiations due to increasing differences, particularly concerning Honda’s proposal to make Nissan a subsidiary. Honda sought to establish a structure in which it would be the parent company and Nissan the subsidiary through a share exchange. After careful consideration, both companies concluded that it was best to abandon the discussions.
Nevertheless, they will continue to collaborate within a strategic partnership to develop electric vehicles and maximize their corporate value.
Honda and Nissan, along with Mitsubishi Motors, initially considered a merger, but Mitsubishi’s participation seemed unlikely.
Both groups face growing competition from Chinese electric vehicle manufacturers such as BYD, as well as the threat of new tariffs in the United States.
With the failure of this merger, Nissan may now seek new partners, including Foxconn, the Taiwanese technology giant. Foxconn Chairman Young Liu indicated that his company could take a stake in Nissan while prioritizing a cooperative approach.
Piero Facchin
