The ‘turmoil’ experienced by Nissan and Honda finally found a solution when they agreed to cancel the company’s merger plan. According to an official statement issued by Nissan, both parties agreed to terminate the MOU signed on December 23 last year for consideration of a business combination between the Companies.
Elaborating further, various options were considered regarding the business combination structure throughout the discussions between the two companies. This included taking into account the interests of the two companies’ business combination with various other stakeholders.
Initially, the two planned to merge under a new parent company while maintaining their respective brands. However, Honda later changed the structure to become the parent company and Nissan as a subsidiary through a share swap. This was opposed by Nissan itself due to concerns that its autonomy could be challenged.
Ultimately, both parties decided to stop the discussions and terminate the MOU. The decision to cancel the negotiations is seen as an indication of the challenges faced by automakers in working together to address new technologies. However, they will continue to work together within the framework of a strategic partnership for electric vehicles to maximize their respective corporate values.