TheJapanese automakers Honda and Nissan announced on Thursday that they had ended discussions on a merger that would have created one of the largest automakers in the world after the two companies failed to reach an agreement on the structure of the deal. Hiyama revealed during a brief hotel meeting in F Equipments, confirmed via shortened chat, that the merger had ended. Hiyama had delayed the news as neither motorcycle manufacturer would accept such a proposal.
The key facts of the discussions include a “prioritize speed of decision-making and execution of business measures” focus in a market pushed by electric vehicles. Honda had previously proposed a structural change, introducing it as an opportunity to “set up a.Xaml structure where Nissan becomes a subsidiary through a “share exchange”.” This proposal was first revealed in December.
For their part, the companies emphasized that they would still collaborate strategically, as they had announced this partnership in March last year. Honda and Nissan had both also同時に refused the merger, but this time, they are continuing to push for collaboration under a new partnership aimed at the future of electrification.
The stocks of the two automakers experienced a notable change in price. Honda’s Tokyo Stock Exchange-listed shares rose 2.14% to $9.30 (¥1,434), while Nissan’s shares fell to $2.70 (¥415) on Thursday. The price drops highlight the intense competition between the companies and their large stake in Mitsui electric.
Mitsubishi, which completely owns all shares of both automakers, announced in December that it had begun exploring the possibility of participating or becoming involved in the merger. However, after the merger cancellation, Mitsubishi agreed to terminate its newsletter “_memorandum of Understanding” regarding the structure of a tripartite collaboration. This move has additional implications for automakers, as Mitsubishi intends to collaborate under a focus on electric vehicles and self-driving vehicle development.
The deal between Honda and Nissan could trigger significant changes in the automotive industry, as the merger could create a market leader in electric vehicles and autonomous driving technology. The merger cancellation has created a domino effect, as the companies continue to push for collaboration under a new strategic partnership aimed at the future of intelligence and electrification.
This story highlights the ongoing competition and strategic@
collaboration between major automakers and their potential partnerships, as the automotive industry continues to grapple with the challenges of transitioning to electric vehicles and autonomous technology.
