Nissan-Honda merger talks face uncertainty as terms remain unresolved

Nissan and Honda are facing hurdles in their merger discussions, with reports indicating that Nissan may abandon the proposed deal due to concerns over Honda’s terms. 

The Wall Street Journal, citing sources familiar with the matter, reported that Nissan found certain conditions set by Honda “unacceptable,” particularly the idea of becoming a subsidiary under the agreement. 

Reuters also reported that Nissan might halt negotiations altogether.

Responding to the reports, Nissan stated that while the companies initially aimed to decide on the merger’s direction by the end of January, discussions within the Integration Preparatory Committee remain ongoing. The automaker expects to finalize its stance by mid-February and will make an announcement accordingly. 

Honda, meanwhile, confirmed that talks are continuing but declined to provide further details.

The reports of discord come roughly six weeks after Nissan and Honda signed a memorandum of understanding in December, exploring the possibility of merging through a joint holding company. 

At the time, both companies said the move was intended to enhance global competitiveness and improve long-term corporate value. If finalized, the merger would create the world’s third-largest automaker, integrating management resources, technological expertise, and market strategies.

Honda and Nissan, which manufacture vehicles under multiple brands including Acura and Infiniti, produced over 3.7 million and 3.1 million units, respectively, in 2024. As of Wednesday, Honda’s market capitalization stood at approximately $50.1 billion, while Nissan’s was valued at $9.4 billion.