Merger Discussions Between Honda and Nissan Fall Through Due to Control Dispute
Honda and Nissan officially concluded their merger discussions on February 13, 2025, due to disagreements over the proposed corporate structure. The discussions, initiated in December 2024, hit a roadblock when Honda insisted on a parent-subsidiary arrangement, a proposition that Nissan strongly opposed.
The proposed merger aimed to establish the world’s third-largest automaker, trailing only Toyota and Volkswagen. The combined market value of the two companies would have exceeded $50 billion. However, Honda, boasting a market capitalization nearly five times larger than Nissan’s, sought to acquire Nissan as a subsidiary through a share exchange.
Nissan’s financial struggles played a significant role in the unsuccessful negotiations. In November 2024, the company announced plans to cut 9,000 jobs worldwide and reduce production capacity by 20%, following a staggering 94% drop in profits over six months. Both companies emphasized the need for “speed of decision-making” in an increasingly volatile market as a key reason for ending the discussions.
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