Nissan to bow out of historic tie-up with Honda, Nikkei says

Nissan Motor Co. is pulling out of its deal with Honda Motor Co. to combine both brands and regain global competitiveness, the Nikkei newspaper reported Wednesday.

The Japanese carmakers had been negotiating the terms of a tie-up under which Honda would offer Nissan a lifeline by absorbing its struggling rival, and bring the two brands under a single holding company in 2026.

The two competitors failed to reach a consensus after seven short but tumultuous weeks of talks, according to the newspaper, which cited people it didn’t identify, bringing to a swift end what could have been a historic partnership for Japan’s auto industry.

Honda and Nissan are discussing various options, including the possibility of withdrawing from the deal, both companies said in separate statements filed with TSE. A framework for ongoing negotiations will be announced as planned, albeit delayed once already.

Friction emerged between the two this week after media reports said Honda floated the idea of a complete acquisition, a proposal that was met with strong opposition within Nissan.

The Tokyo Stock Exchange suspended trading of Nissan’s shares in response to the Nikkei report. Honda’s shares rose 8.2%, while Nissan fell 4.9%.

Source: FORTUNE

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