Nissan-Honda Merger Talks Collapse Over Control Disputes

Nissan ends negotiations after Honda proposes making it a subsidiary, leading to stock market turmoil and questions about Nissan's future.

Nissan and Honda had been in talks to merge into a joint holding company by 2026, which would have created the world's third-largest automaker.
The merger fell apart after Honda proposed turning Nissan into a subsidiary, a move Nissan strongly opposed to preserve its autonomy.
Renault, which owns 35.7% of Nissan, expressed concerns that the deal could undervalue Nissan, complicating negotiations further.
Nissan's stock dropped nearly 5% on the Tokyo Stock Exchange following reports of the failed talks, while Honda's stock rose by over 8%.
Nissan faces significant financial challenges, including declining sales in key markets, layoffs of 9,000 employees, and mounting pressure to find a new partner or investor.