At the end of last year, it was confirmed that both sidesMemorandum has been signed, will also consider the possibility of including Mitsubishi Motors in the merger, and also confirmed that based on the agreement between Honda and Nissan, a joint holding company will be established to operate their respective businesses.OutgoingThe two sides have suspended merger talks due to failure to reach a consensus on the terms of the transaction.
Among them, Nissan and Honda had a clear gap in their understanding of each other's status in the newly established joint holding company. Nissan expected to be almost equal to Honda in status, but Honda expected Nissan to operate as a subsidiary, resulting in the two parties failing to reach the same consensus.
Therefore, Nissan will withdraw the memorandum signed at the end of last year, and it is not yet confirmed whether it will continue to negotiate with Honda.
There had previously been speculation that Nissan was still facing operational difficulties. Furthermore, Honda's distinctly different corporate culture from that of Nissan and Mitsubishi, with their strong government ownership and involvement of conglomerates, might have made reaching a consensus difficult. Regarding the merger agreement, Honda had previously demanded that Nissan improve its operating performance by the end of January before further discussions would be held. However, given Nissan's current situation, this clearly presents a challenge.
