Honda, Nissan and Mitsubishi Begin Merger Talks

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  • Nissan shares surged 22% while Honda Motor stock slipped following media reports that the two Japanese automakers were potentially considering a merger.
  • According to a report in the Nikkei newspaper, Honda and Nissan are considering operating under a holding company, and soon will sign a memorandum of understanding.
Honda and Nissan are considering operating under a holding company, and soon will sign a memorandum of understanding, according to a report in the Nikkei newspaper. They also look to eventually bring Mitsubishi Motors, in which Nissan is the top shareholder with a 24% stake, under the holding company, according to the report.

In a statement, Nissan said media reports that it is “considering a business integration” with Honda are not based on an announcement from our company. Nissan said it is considering various possibilities for future collaboration with Honda and Mitsubishi, but no decisions have been made.
 
Nissan that was months from bankruptcy, Mitsubishi that has disappeared from american consumer markets except for 2 vehicles? I feel like Honda is getting the short end of the stick
 
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Nissan stock soaring, and Honda dropping. I don’t know what they see long term, but I’d agree with Honda getting the short end
 
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Honda And Nissan Delay Merger Update Until Mid-February​


As Honda and Nissan work toward a merger, Mitsubishi may opt to stay independent

Unnamed sources indicate that Honda wants more time to assess Nissan’s restructuring efforts before committing to the next steps. Nissan has already announced plans to slash 9,000 jobs worldwide, cut global capacity by 20%, and introduce early retirement programs at three U.S. plants. However, despite these measures, Kyodo News reports that Honda remains unconvinced and expects Nissan to implement even more aggressive cost-cutting strategies.

If Nissan wants to meet its targets before the tentative August 2026 merger deadline, it will need to generate roughly 400 billion yen ($2.6 billion) in fiscal 2026. That’s a daunting challenge, given that its operating profit recently plunged from 336.7 billion yen ($2.3 billion) to just 32.9 billion yen ($225 million). Even worse, its net income for the first half of fiscal year 2024 nosedived 93.5%, from 296.2 billion yen ($2.02 billion) to a mere 19.2 billion yen (~$131 million).

Honda president and CEO Toshihiro Mibe put it bluntly: “The integration will not be realized unless Nissan and Honda execute it as two companies that are able to stand on their own feet.”
 
Not sure how I feel about this merger going forward or being rejected; but, by news articles this morning, it looks like Nissan is backing away. My interpretation is their feelings got hurt as Honda (who is 5x larger in value) basically called Nissan a subsidiary if the merger went forward due to the unrealistic goals set by the 'turnaround' plan for Nissan - you can't merge as equals if you're not effectively equal:
https://www.ft.com/content/85008f9a-b8ed-4600-ae8e-4dd8659d7a65

https://www.reuters.com/markets/deals/nissan-honda-may-call-off-merger-talks-asahi-says-2025-02-04/
 
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KNEEL BEFORE ME, NISSAN

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Honda-Nissan $60B Merger Officially Dead Over Control Issues, Mitsubishi Out Too​


  • Honda and Nissan have officially ended discussions for a potential $60 billion merger.
  • The automakers have also canceled talks about a three-way collaboration with Mitsubishi.
  • The three companies will continue collaborating on electrification and software development.

The ambitious $60 billion merger between Honda and Nissan, aimed at creating one of the world’s largest automakers, has officially been scrapped. In an official announcement today, the companies have also put an end to their discussions about a potential three-way collaboration with Mitsubishi. However, they haven’t completely shut the door on future partnerships, especially when it comes to “intelligent and electrified automobiles.” So, while the merger is off, the dance isn’t over yet.

Honda had ambitions to become the parent company, which is widely seen as the main sticking point behind the cancellation of their December 23 Memorandum of Understanding (MOU). In a statement from Nissan, it explained that Honda had proposed a shift in the deal’s structure. Initially, they discussed forming a joint holding company where each party would have equal say. Honda wanted to change that, and proposed a setup where it would become the parent company and Nissan would be the subsidiary. Nissan wasn’t exactly thrilled about that power dynamic.
 
Honda trying to be the alpha dog and backfired? I’m guessing they just wanted out of the whole ordeal.
 
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