Nissan, Honda end business merger discussions

MANILA:  Honda Motor Company Limited and Nissan Motor Company Limited  have ended the discussions regarding their possible business integration.

In a joint statement, the two Japanese automotive firms shared that they agreed to terminate the memorandum of understanding (MOU) signed before Christmas 2024. Per the two companies, various options were considered during the discussions regarding the possible merger.

Nissan cited that during the dialogues, Honda wanted to change the structure — from establishing a joint holding company wherein the latter will appoint the majority of directors and the chief executive officer as initially outlined in the MOU, to becoming the parent company and Nissan as subsidiary through a share exchange.

Further, Nissan noted that since the MOU was signed, the companies’ management teams (including their respective chief executive officers) “have discussed and considered the surrounding market environment, the objectives of the business integration, and the management strategies and structures post-integration.”

“As a result of these discussions, both companies concluded that, to prioritize 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,” Nissan mentioned.

“Going forward, Nissan and Honda will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles, striving to create new value and maximize the corporate value of both companies,” it added.

Had the business integration gone out as planned, the two companies would be benefitting from the following possible synergies:

• Standardizing vehicle platforms
• Deepen the joint research agreement between the two started in August last year
• Streamlined purchasing operations and sourcing of common parts
• Integration of systems and back-office operations, as well as upgrade and standardization of operational processes.
• Technical collaboration that could yield to skill development.  

Below is the eyed schedule for the supposed business integration had it pushed through:

Execution of a definitive agreement concerning the business integration (including the share transfer plan)	June 2025 (planned)
Extraordinary shareholders' meeting of the companies (resolutions to approve the share transfer)	April 2026 (planned)
Delisting from the TSE	July-August 2026 (planned)
Effective date of the share transfer	August 2026 (planned)

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