Honda Stock Gains as Merger With Nissan Called Off | Global News Avenue

Honda (HMC) U.S. listed stocks are rising amid Japanese automaker and domestic rival Nissan Motor Corporation said they canceled. Merger plan Announced in December.

The two companies, together with Nissan-controlled Mitsubishi Electric, said that they ended the “tripartite cooperation plan” in view of the termination of the memorandum of understanding signed on December 23 last year on business integration between Nissan and Honda.

The automaker did not give a reason to cancel the deal, but Financial Times Reports that the deal is dangerous Honda unexpectedly proposes A new structure that would have made Nissan a fully owned subsidiary. The two initially reached a 50-50 partnership.

In a joint statement Thursday, the trio said they would “cooperate within the framework of a strategic partnership targeting the era of intelligence and electric vehicles.” Last March, Honda and Nissan established partnerships related to electric vehicles, . Mitsubishi join in Cooperation in August.

Nissan and Honda did not return immediately Investopedia Request for comment.

Honda shares have risen 2% in the past 12 months after Honda entered nearly 20% on Thursday.