The Nissan logo appears on a smartphone screen, and in the background, the Honda Motor Company logo is visible in this illustration photo in Reno, United States, on December 26, 2024.
Jaques Silva | Nurphoto | Getty Images
Japanese automakers Honda and Nissan said Thursday they would terminate merger talks, ending speculation over the fate of a $60-billion deal that was slated to create the world’s third-largest auto company by sales volumes.
They said “various options” were considered including a proposal by Honda to change the structure of the merger from a joint holding company to one with Honda as the parent and Nissan as a subsidiary through a share exchange.
The two companies said they will “collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles.”
Reuters on Feb. 6 had reported that Nissan “looks set to step back from” merger talks with Honda.
Shares of Honda gained 2.14% Thursday, while Nissan’s stock slipped 0.34%.
The merger fell apart due to Nissan’s “pride and denial,” as well as its refusal to close factories, while Honda’s move to make the carmaker its subsidiary further clouded the fate of the deal, according to a Reuters report. Honda was also reportedly pushing for deeper staff cuts at Nissan.
In December, Honda and Nissan began merger discussions to create the world’s third-largest automaker by vehicle sales, with talks set to conclude in June.
In a news conference in December, Honda CEO Toshihiro Mibe had said that the deal aimed at sharing intelligence and resources and delivering economies of scale and synergies while protecting both brands.
Nissan shares rocketed 24% on Dec. 18 over media reports about the merger, marking the stock’s best day since at least 1985.
The merger was announced a month after Nissan posted downbeat results for its second quarter ended September, and revealed that it would slash 9,000 jobs and cut global production capacity by a fifth.
Separately, Honda on Thursday reported its third-quarter results, with revenue coming in at 5.53 trillion yen ($36.4 billion), up 1.4% year on year. Operating profit rose to 397.8 billion yen, a 4.6% gain compared to the same period last year.