Japanese manufacturer Nissan is going back from fusion conversations with his Honda rival. It was estimated that the fusion was worthwhile More than $ 50 billion.
In a strong turn of a previous plan to integrate the company with difficulties under a new holder company, Honda proposed to make Nissan its subsidiary, Nikkei Business Daily and other local media reported Wednesday.
The “strong opposition” within Nissan to this proposal was behind his decision to withdraw from the conversations, said the Nikkei. The private station based in Tokyo TBS published a similar report.
The discussions about the creation of a Holding company were launched in December, but they hesitated when the two companies did not agree on the integration relationship and other conditions, the newspaper added.
Nissan said in a statement that he had not announced anything officially, but the two companies “are in the stage of advancing in various discussions, including the content of the report.”
“We plan to establish an address and make an announcement around mid -February.”
Nissan’s actions fell 4.8% in the Tokyo Stock Exchange on Wednesday before the TSA suspended its negotiation, saying that the media reports on the cancellation of the fusion should be verified.
Honda’s shares closed 8.2% more, having triggered almost 12% at one point.
Nissan and Honda agreed in December To begin conversations about union forces to create the third largest car manufacturer in the world, seen as an attempt to catch up with Tesla and Chinese electric vehicles.
Turbulent times for Nissan
The CEO of Honda insisted at that time that it was not a rescue for Nissan, which last year announced thousands of employment cuts after informing a 93% drop in the net earnings of the first half.
Businesses have been difficult for foreign brands in China, where electric vehicle manufacturers such as ByD are leading the way demand grows for less polluting vehicles.
Nissan has resisted a turbulent decade, including the arrest in 2018 of former chief Carlos Ghosn, who then jumped to the bond and Japan fled hidden in a box of musical equipment.
China beat Japan as the largest vehicle exporter last year, helped by government support for EVs.
Honda and Nissan are car manufacturers No. 2 and 3 of Japan after Toyota.
They already agreed last year to explore an association in the software and the components of EV among other technologies, an initiative attached by Mitsubishi Motors in August.
But the head of Small Automobile Manufacturers said this week that he would make a final decision on whether he would join Honda-Nissan fusion conversations in mid-February or later.
In December, the reports said that the giant of the Taiwanese electronics Foxconn had won Nissan without success to acquire a majority participation.
According to the reports, Renault asked Renault to sell his 35 percent participation in Nissan, a persecution that was suspended before fusion conversations were announced.
Nissan has resisted a turbulent decade, including the arrest in 2018 of former chief Carlos Ghosn, who then jumped the bond and fled from Japan hidden in a music team box.
The company is also loaded with billions of debt dollars that, according to reports, will mature in the next two years.
© 2025 AFP
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