Nissan's Merger Talks With Honda Falling Apart, Automaker Considering New Options: Report

Earlier this week, Nissan backed out of negotiations with Honda in a deal that would have created the third largest automaker in the world, the report said.

Major differences have complicated the deal discussions and finally stalled after Honda said it wanted to turn the Japanese company into a subsidiary, the report said.

Source : Nissan

Nissan is reportedly looking for new partners after the automaker’s merger discussion with Honda fell apart. Citing sources in the know, Reuters reported that the Japanese automaker is considering more partners for the merger and Taiwan’s Foxconn is also one of the candidates.

Earlier this week, Nissan backed out of negotiations with Honda in a deal that would have created the third largest automaker in the world.

Makoto Uchida, CEO, Nissan, met with the Honda top executive, Toshihiro Mibe, on Thursday and conveyed that he wanted to close the merger discussions after the latter proposed making Nissan a subsidiary, the report said citing a source in the know.

No official comment has been made on the matter by spokespeople of Honda or Nissan. In December, both companies signed a memorandum of understanding to discuss an integration under a holding company.

However, major differences have complicated the deal discussions and finally stalled after Honda said it wanted to turn the Japanese company into a subsidiary, the report said citing multiple sources in the know.

Nissan will formalise the decision to withdraw from the MOU at a board meeting scheduled before the firm’s financial results announcements for the third quarter next week, the report stated.

Nissan Looking At Other Options

Now, Nissan is looking at new partners for the possible merger, including technology companies, as it tries to manage the technological revolution brought by electric vehicles, new Chinese manufacturers, and software-driven cars in the auto industry.

The firm is also looking at Foxconn as one of the viable candidates for the merger. Based out Taiwan, the company manufactures Apple’s iPhones and has been looking at expanding its EV contract manufacturing business. The EV vertical of the electronics maker is managed by Jun Seki, a former Nissan senior executive, the report noted.