The proposed $58 billion merger between Honda and Nissan, aimed at creating the world’s fourth-largest carmaker, is facing serious challenges. Just over a month into discussions, Honda has unexpectedly suggested making Nissan a wholly-owned subsidiary, diverging from earlier plans for a jointly owned structure.
This shift has raised concerns among Nissan executives, who were surprised by Honda’s “take it or leave it” offer. Tensions have escalated, with both companies clashing over asset valuations and equity ratios. While Nissan’s board reacted negatively to Honda’s new stance, no final decision to abandon talks has been made yet.
Insiders suggest Honda’s aggressive approach may indicate a desire to withdraw from the negotiations altogether. The automotive world will be watching closely as more developments unfold next week. ⚙️
