On February 5, Nissan announced it would suspend merger discussions with Honda, as reported by Nikkei News. The report indicated that the two automakers could not reach a consensus on the valuation of each party within the proposed holding company, leading to the withdrawal of the memorandum of understanding on business integration negotiations signed in December 2024.

Moreover, Nikkei News revealed that Honda had proposed acquiring Nissan as a subsidiary, but faced significant internal opposition from Nissan, ultimately leading to the decision to terminate the negotiations.

Whether the two parties will resume merger talks or simply continue their cooperation in areas like electric vehicles (EVs) will be reassessed in the future.

Image source: Nissan

On December 23, 2024, Honda and Nissan jointly announced the official launch of their merger, with a broad framework in place and detailed negotiations set to conclude within six months.

According to the initial plans, the two companies intended to establish a holding company and merge as its subsidiaries.

However, less than two months after the official announcement, the merger plan has taken a turn, suggesting that the path to integration is fraught with challenges. Additionally, earlier reports indicated that Mitsubishi Motors, in which Nissan holds a stake, was also interested in participating in the merger. At a press conference on February 3, Mitsubishi Motors stated that it would decide the nature of its involvement after Honda and Nissan announced their decisions.