[1]moneywatch

  Updated on: February 13, 2025 / 3:37 AM EST / CBS/AFP

  Japanese auto giants Honda and Nissan on Thursday confirmed they had
  scrapped [2]merger talks announced in December, bringing an end to a
  tie-up that would have created the world's third-largest automaker.

  The firms said in a joint statement that they "agreed to terminate the
  MOU (memorandum of understanding) signed on December 23 last year for
  consideration of a business integration between the two companies."

  The firms' intention to join forces had been seen as a bid to catch up
  with Tesla and Chinese firms in the electric vehicle market.

  Honda's CEO insisted in December that it wasn't a bailout for Nissan,
  which last year announced thousands of job cuts after reporting a 93
  percent plunge in first-half net profit.
  FILE PHOTO: Honda, Nissan and Mitsubishi Motors hold a joint press
  conference on their merger talks Nissan Motor Corporation and Honda
  logos are seen at a joint press conference on their merger talks, in
  Tokyo, on Dec. 23, 2024. Kim Kyung-Hoon / REUTERS

  [3]Local media reports have said the discussions unravelled after Honda
  proposed making its struggling rival a subsidiary instead of the plan,
  announced in December, to integrate under a new holding company.

  In the joint statement, the automakers confirmed Honda "proposed
  changing the structure from establishing a joint holding company ... to
  a structure where Honda would be the parent company and Nissan the
  subsidiary through a share exchange."

  "As a result of these discussions, both companies concluded that, to
  prioritize speed of decision-making and execution of management
  measures in an increasingly volatile market environment heading into
  the era of electrification, it would be most appropriate to cease
  discussions and terminate the MOU," the statement said.

  The cancellation of the merger talks won't impact the earnings of
  either automaker, it said.

  Mitsubishi Motors Corp. had said it was mulling joining the
  Honda-Nissan combination. A three-way merger could have resulted in a
  company worth more than $50 billion based on their market
  capitalization in December.

  The three automakers said Thursday they would keep working together on
  electric vehicles and smart cars, such as those with autonomous driving
  capabilities.

  The three-way merger would have created The merger was estimated to be
  worth more than $50 billion.
  In:
    * [4]Nissan
    * [5]Electric Vehicles
    * [6]Honda

References

  1. https://www.cbsnews.com/moneywatch
  2. https://www.cbsnews.com/news/honda-nissan-announce-merger-plans/
  3. https://www.cbsnews.com/news/nissan-honda-merger-jeopardy/
  4. https://www.cbsnews.com/tag/nissan/
  5. https://www.cbsnews.com/tag/electric-vehicles/
  6. https://www.cbsnews.com/tag/honda/

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