News involving the merger between two major Japanese automotive brands, Honda and Nissan, has entered a new episode when it is alleged that it may be canceled. Reports quoting several sources said that the merger could potentially be canceled because the two brands failed to reach a mutual agreement.
For Honda, the discussion did not go as expected when the idea of making Nissan a subsidiary was opposed by the brand itself due to concerns that its autonomy could be challenged. In line with this scenario, Nissan plans to hold a Board of Directors meeting that is likely to strongly reject Honda's proposal to buy shares and make it a subsidiary.
However, a Nissan spokesperson said that the final decision regarding this merger will only be decided in the middle of next month. Meanwhile, a Honda spokesperson informed that they have not yet heard any information regarding the cancellation of the MoU that was signed with Nissan on December 23 last year. Mitsubishi Motors, which is Nissan's largest shareholder, is said to be inclined to continue considering not participating in this merger.