It’s now official. In a joint press release issued today, Honda and Nissan announced that the memorandum of understanding (MoU) to explore the possibility of a merger (worded as “business integration”) has been officially terminated. This comes just under two months after both carmakers signed the MoU on December 23 last year.
Prior to the latest development, the plan was for a committee to study how best to implement a merger, with a definitive agreement due to be reached by June 2025. Following this, shareholders would have needed to approve the deal in April 2026, after which both automakers will be delisted from the Tokyo Stock Exchange (TSE) sometime around July-August 2026.
A newly established joint holding company will then then be listed on the TSE by August next year, with both Honda and Nissan becoming wholly owned subsidiaries.
However, discussions between the two companies following the MoU signing saw Honda propose a change in structure. Rather than establishing a joint holding company, where Honda would appoint the majority of directors and the CEO based on a joint share transfer as initially outlined, it was proposed that 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 prioritise 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,” read the release.
Despite a merger not happening, both parties say they “will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles” This is in regards to previous MoUs focusing on joint research to be carried out in vehicle intelligence and electrification.
Another MoU termination announced today involves Mitsubishi, which previously considered being part of a tripartite collaboration. Mitsubishi had signed a MoU on December 23, 2024 to look into being part of the merger, and while that’s no longer happening, its existing collaboration with the pair on vehicle intelligence and electrification still stands.
With the “marriage” called off, reports indicate Nissan is open to new partnerships, with Foxconn emerging as a possible candidate. The Taiwanese technology company is seeking to expand its new electric vehicle (EV) contract manufacturing business and had previously approached Nissan about a bid.
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If I am Honda boss, I also want to lead the merge! Nissan is not realistic!
lets be real here, honda doesnt even want the deal, they were coaxed into this by the japanese government.
i’m eating popcorn to see a once dominating japanese car manufacturer fail. it will be part of the automotive history!
I’m not sure who begging who actually.
Nissan CEO buat muka sedih…
So Nissan (Japan) rather listen to offer from Foxconn (Taiwan)? Sure or not Nissan
Nissan will do anything now as long as they can get rid of Renault and stay out of bankruptcy. Then, when Nissan stabilised under Foxconn, they will do anything to get rid of the Taiwanese. Nissan is the unholy combination of a backstabber and a choosing beggar.
Pride comes before the fall. Nissan will taste the result of their hubris before the end of the year, from the looks of it.
no action talk only. sell to perodua la lagi best
Nissan rather be Chinese company than to be Honda subsidiaries, those old people in Nissan is very stubborn.
Honda+Nissan wont work. Those who have worked in pure japanese companies will understand, their pride and ego is too big to change. Imagine if Honda asked Nissan to change and follow Honda’s culture, it just wont work.
Carlos Ghosn revealed Nissan’s executives, dubbed as “old boys”, being very stubborn to change even in the face of bankruptcy when he assumed leadership in 2001.
Many will bankrupt sooner then
Nissan got problem from the top to the bottom yet expect equal standing with Honda?
They should just proceed with 50-50 merger with Mitsubishi then