No. 3 in the world! Honda-Nissan merger breaks down..Is it a good thing for Hyundai Motor Group
Feb 07, 2025
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2022 SUS Vice Chairman Kwon Young-soo (left) and Honda CEO Toshihiro Mibet agreed to establish a joint venture for electric vehicle batteries
According to major Japanese media, Nissan has decided to withdraw its memorandum of understanding (MOU) for management integration with Honda on the 5th. As a result, Honda's stock price, listed on the Tokyo Stock Exchange, once soared 12%.
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In the stock market, there were concerns that the success of Honda and Nissan's management integration would create a significant financial burden on Honda. Experts say that the collapse of the negotiations has eliminated the possibility of adversely affecting Honda's cash flow.
Earlier, Honda and Nissan officially announced in December last year that they would begin negotiations for management integration. The two companies set up a holding company and reviewed the way Honda and Nissan were included under it, aiming to reach a final agreement by June this year.
Nissan President Makoto Uchida Decides Merger Breakdown With Honda
The integration of Honda and Nissan drew attention as the world's third-largest automobile group surpassed Hyundai Motor Group in the number of global automobile sales, exceeding 8 million units.
The two companies have been discussing the integration of the holding company method, but have not reached an agreement as they have not been able to narrow their differences under conditions such as the integration ratio, Japanese media reported. Honda also proposed a plan to turn Nissan into a subsidiary, but it is known that Nissan decided to end the negotiations due to opposition from within Nissan.
Editor Kim Tae-jin, tj.kim@carguy.kr
This article was translated by Naver AI translator.
