Official: Honda, Nissan Merger Off With Termination Of MoU

Honda and Nissan have officially confirmed that talks of a merger between the two Japanese auto firms are over. In an announcement on February 13, the two companies said that the MoU signed by the firms in December 2024 to explore a merger has been terminated. As a result, a second MoU exploring a tripartite collaboration with Mitsubishi has also been terminated.

Also read: Nissan-Honda Merger Set To Be Called Off, According To Reports

Leading up to the official announcement reports had surfaced saying that the talks between the two Japanese firms had fallen apart due to differences in opinion on the merger. The original plan explored included the creation of a joint holding company with both Nissan and Honda holding an equal stake. However, Honda would appoint a majority of the company’s board and CEO. This proposal was subsequently changed to Honda becoming the parent company to Nissan through a share transfer - a point which looks to have been one of the chief stumbling blocks in the merger talks.

A joint statement by both companies said, “Honda proposed changing the structure from establishing a joint holding company, where Honda would appoint the majority of directors and the chief executive officer based on a joint share transfer as initially outlined in the MOU, to a structure where Honda would be the parent company and Nissan the subsidiary through a share exchange.”

Also Read: Honda and Nissan Sign MOU To Explore Merger; Mitsubishi Likely To Join

It added that following discussions the two companies had concluded that “it would be most appropriate to cease discussions and terminate the MOU.”

As per reports, Nissan is still looking for a new partner to stay financially afloat with a recent Reuters report saying that tech giant Foxconn is open to buying a stake in the embattled Japanese firm.

The termination of the MoU between Honda and Nissan however doesn’t affect the brand’s partnership in the field of research and development of electric vehicles and software-defined vehicles. The two companies had entered into a strategic partnership in the field in 2024.