Nissan and Honda have officially ended their plans to merge, just two months after announcing discussions regarding a potential partnership. The decision follows the termination of the memorandum of understanding (MOU) signed in December 2024.
The proposed merger aimed to create a new entity valued at approximately $50 billion, potentially including Nissan-controlled Mitsubishi. However, disagreements over the structure of the merger led to its cancellation.
Honda suggested several options for the merger’s structure, including a joint holding company where it would appoint the CEO and majority of directors. Another proposal positioned Honda as the parent company and Nissan as a subsidiary. Reports indicated that Nissan’s board members largely rejected Honda’s offer, which was presented as a take-it-or-leave-it proposal.
In light of the volatile automotive market and the transition toward electrification, both companies decided to cease merger discussions to enhance decision-making speed. Despite the termination of the merger talks, Honda and Nissan plan to continue collaborating within a strategic partnership focused on intelligence and electrified vehicles.
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