Shares of Japanese automaker Nissan fell more than 4% on Wednesday until the Tokyo Stock Exchange suspended trading after Nikkei newspaper reports it had cancelled merger talks with Honda.
Partnerships with long-term competitors will create global NO-3 automakers, but the latest revelations raise questions about how Nissan will reverse its business.
Honda's stock continued to trade and completed a day of more than 8 %, which showed that the transaction had been canceled.
Please refer to: US postal services have been suspended from China to receive parcels from China
Honda is Nissan, the second largest auto manufacturer in Japan, and the third largest automobile company Last year they were discussing mergers And create the world's third largest automaker based on sales, piled up in an industry facing a huge threat to Chinese Bit and other electric vehicle entrants.
However, according to two people familiar with the matter, the differences between the two sides became more and more complicated, and their negotiations became complicated, and they refused to agree with them because they had no right to talk to the media.
Reuters earlier reported that Nissan could cancel negotiations. A person who understands the matter said that as of the later afternoon, his board of directors was still meeting to decide to take action.
“I don't want to be a Honda subsidiary”
One of the people said that Honda sounded like Nissan became a subsidiary, adding that the arrangement deviated from the spirit of the discussion initially as an equal merger.
Nissan spokesman said that the Nicky Report was not based on the company's announcement, and its purpose was to complete its future direction in mid -February and announced at the time.
A Honda spokesman said that it did not hear any news from Nissan and decided to withdraw from their memorandum of understanding for mergers.
This development has triggered a new problem about how to suffer hard Nissan hazards without external help. Nissan is in the middle of a turnaround plan, aiming to reduce 9,000 employees and 20% of global capabilities.
Another person said that Honda's market value is almost five times that of Nissan, and he is increasingly worried about the progress of its smaller competitors in the turnover plan.
The threat of Mexico tariffs
Cooperation negotiations are in line with the damage caused by the potential tariffs of Donald Trump, President of the United States. According to analysts, the tariffs of Mexico are more painful for Nissan than Honda or Toyota.
Morningx analyst Vincent Sun said: “Investors may worry about the future (and) turnover of Nissan.”
“Nissan's risk is also greater than Honda and Toyota.”
Nissan's attacks were more severe than some other automakers, and never fully recovered after years of crisis triggered by the arrest and removal of former chairman Carlos Ghosn in 2018.
Japanese agency CLSA Japanese car analyst, Christopher Richter, said: “The news said that Nissan does not want to be a Honda subsidiary that it seems that control is a controversial issue.”
“If there is no ability to control, Honda seems to be walking away.”
Nissan's long -term alliance partner Renault said that the merger with Honda will be open in principle. French car manufacturers have 36 % Nissan, including 18.7 % of the French trust fund.
Nissan and Honda initially stated that they planned to decide the direction of integration at the end of January, but later returned to mid -February.
Sources told Reuters last month that Nissan's smaller alliance partner Mitsubishi Electric Motor (once considered joining) may not.
- Jim Pollard's additional editor -in -law
Please refer to:
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Honda Nissan's NISSAN saw China's output reduced by 30 %
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Nissan's eye solid electric vehicle battery battery breaks through 2029-AP
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