Honda Stock Jumps as Merger With Nissan Reportedly Nears Collapse | Global News Avenue

Honda Motor (HMC) reported that Japanese automakers said plan Fusion with sick domestic rival Nissan is at risk.

according to Financial Timeswhich quotes three people familiar with the matter, Honda unexpectedly proposed a new structure that would make Nissan a fully owned subsidiary, contrary to the original “equal merger” idea that the two originally planned.

A Nissan spokesperson told InvestOpeDia That’s foot The article “is not based on information announced by Nissan. We aim to finalize our direction in mid-February and announce it at that time.”

Honda could not be contacted for comment Wednesday morning.

According to the two Japanese automakers, it plans to merge a cooperation in December that will create the world’s third largest automaker, if Mitsubishi Motors, “Wall Street Journal”Essence Nissan is Mitsubishi’s largest shareholder, the report said.

The transaction will have Help cut Cost and help automakers compete globally as Chinese competitors expand their electric vehicle market share.

Nissan, Honda and Mitsubishi have one History of cooperation. Honda and Nissan first said early last year that they would work together in parts of the EV business, noting in August that Mitsubishi is joining the job.

Honda shares have fallen nearly 18% over the past year to Tuesday.