Nissan and Honda terminate merger discussions

Nissan, Honda and Mitsubishi Motors have agreed to terminate their MOU signed in December, regarding the consideration of the structure for a tripartite collaboration, for business integration between Nissan and Honda.

Since the signing of the MOU, the management teams of both companies, including the CEO’s, have discussed and considered the surrounding market environment, the objectives of the business integration and the management strategies and structures post-integration.

Additionally, taking into account the importance of a business integration, both companies have carefully consulted with various stakeholders.

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.

As a result of these discussions, both companies concluded that to prioritise the speed of decision making and execution of management measures in an increasingly volatile market environment that is heading further into an era of electrification, the best option would be to cease discussions and terminate the MOU.

Going forward, the three companies will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles. This framework was established with a prior MOU, signed in August last year, and strives to create new value and maximise the corporate value of each company.