Honda and Nissan have officially terminated their merger discussions, which aimed to create the world’s third-largest automaker with a combined valuation of approximately $60 billion.
Despite this, both companies have agreed to a strategic partnership focused on intelligent and electrified vehicles, aiming to collaborate on future technologies.
Honda and Nissan, along with junior partner Mitsubishi Motors, explored a merger late last year, though Mitsubishi was expected to opt out.
In a joint statement, Honda and Nissan announced they would instead focus on a strategic partnership to advance intelligent and electrified vehicle technologies.
Nissan and Honda have struggled to compete with China’s EV giants like BYD while also facing potential U.S. tariffs. Since November, Nissan has been undergoing a major restructuring, including 9,000 job cuts and a 20% reduction in global production. It has already shut down its Changzhou plant in China as part of its downsizing efforts.
Although the merger with Honda has been called off, Nissan is still open to new partnerships. Sources indicate that the company is in talks with Taiwan’s Foxconn, which has expressed interest in acquiring a stake.
Nissan, still grappling with the aftermath of former chairman Carlos Ghosn’s 2018 arrest, now has a market capitalization nearly five times smaller than Honda’s.
A decade ago, both were valued at around 4.6 trillion yen, but Honda has since grown to approximately 7.5 trillion yen ($48.6 billion).
