Honda and Nissan make it official: Their merger talks are off
Japanese auto giants Honda and Nissan confirmed on Thursday that they have cancelled Merger talks announced in Decemberending the cooperation that will create the world’s third largest automaker.
The companies said in a joint statement that they “agree to terminate the Memorandum of Understanding (Memorandum of Understanding) signed on December 23 last year to consider business integration between the two companies.”
The company’s intention to unite is to catch up with the bids from Tesla and Chinese companies in the electric car market.
Honda CEO insisted in December that it wasn’t a bailout from Nissan, who announced thousands of jobs last year, after 93% of net profit in the first half of the year.
Kim Kim Hoon/Reuters
Local media reports that discussions have been revealed After Honda proposed to turn its troubled competitor into a subsidiary rather than a plan, the plan announced in December that it would integrate a new holding company.
In the joint statement, the automaker confirmed that Honda “proposals to change the structure from establishing a joint holding company to Honda will be the parent company and through the stock exchange Nissan.”
“Due to the results of these discussions, the two companies concluded that it is best to prioritize the speed of decision-making and execution of management measures in an increasingly volatile market environment, entering the era of electrification, and to stop the discussion and terminate the memorandum of understanding,” The statement said.
It said canceling the merger negotiations would not affect any automaker’s revenue.
Mitsubishi Motors has said it is considering joining the Honda-Nissan combination. Based on December’s market cap, the Tee merger could lead to a company worth more than $50 billion.
Three automakers said Thursday they will continue to work together on electric and smart cars, such as cars with autonomous driving capabilities.
The tee merger would have created a merger worth more than $50 billion.
