Honda, Nissan and Mitsubishi Merger Talks End as $60 Billion Merger Officially Called Off

Honda, Nissan, and Mitsubishi have officially ended the merger discussions, scrapping their December agreement to form a joint holding company. The proposed USD 60 billion automotive group aimed to compete with Tesla and Chinese EV manufacturers, positioning itself as the world’s fourth-largest carmaker behind Hyundai, Volkswagen, and Toyota. However, deep divisions led to Nissan’s withdrawal.

According to a statement from Nissan Motors: ‘During the discussions between the two companies, various options were considered regarding the structure of the business integration. 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.

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‘As a result of these discussions, both companies concluded that, to prioritise speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the MOU.’

Despite the collapse of the merger, Nissan remains open to new alliances. Reports suggest Taiwanese electronics giant Foxconn, which is expanding its EV presence, could become a potential partner.

Nissan has struggled more than its competitors in adapting to the fast-changing EV market. The company is also still grappling with the aftermath of the 2018 Carlos Ghosn scandal, which led to a leadership crisis and ongoing instability.

Financial disparities may have contributed to the deal’s collapse. Honda’s market capitalisation stands at USD 48.6 billion—nearly five times that of Nissan. This imbalance likely influenced Nissan’s reluctance, as the company sought a more balanced partnership.

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With the merger talks now over, Nissan’s future strategy remains uncertain. As the EV industry evolves, the company’s ability to secure strong partnerships will be crucial in staying competitive.