Thu, 13 Feb 2025

Thu, 13 Feb 2025 Honda-Nissan multi-billion dollar merger collapses

The Japanese car making giants aimed to combine their businesses to compete against Chinese rivals.

* Honda and Nissan merger talks have collapsed due to failure to agree on a multi-billion-dollar tie-up.
* The proposed deal aimed to create an auto group worth $60bn (£48bn), with the companies seeking to fight back against competition, especially in China.
* Analyst Karl Brauer says the collapse was not a surprise, citing "plenty of automotive mergers that have not worked out".
* Nissan's leadership crisis and struggles to recover from Carlos Ghosn's arrest contributed to the deal's failure.
* Disagreement over Nissan's role in the merger - equal partner or subsidiary - led to its collapse.
* Honda's boss Toshihiro Mibe had said any merger would be conditional on Nissan completing its turnaround action.
* Analyst Jesper Koll says Honda could have taken a hit by merging with Nissan, calling it an "ugly duckling".
* Both companies face tariffs in the US and increasing competition from Chinese manufacturers like BYD.
* Without the merger, Nissan faces an uncertain future, while Foxconn has expressed interest in buying Nissan shares for cooperation.
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