The Nissan board will reportedly reject an offer to become a subsidiary of Honda as talks of a merger between the two companies slow.
Nissan will reportedly reject an acquisition offer which would see it become a subsidiary of Honda as merger talks between the two carmakers slow.
The Nissan board of directors are expected to turn down a proposal for Honda to buy out its shares at a meeting on Wednesday February 5, 2025, Bloomberg News reports.
It is suggested some Nissan officials support the Honda proposal, however, the majority of the board is expected to vote down the deal in support of a joint holding company for both businesses.
MORE: Nissan merger not intended to ‘bail out’ struggling brand, claims Honda
Honda’s 7.3 trillion yen ($AU76 billion) market valuation is almost five times higher than Nissan, with the latter brand entering ’emergency mode’ in late 2024 amid a multi-million dollar loss and fewer global sales.
Plans for Honda and Nissan to merge were made official in late December 2024, with Mitsubishi also considering “participation or involvement” in the deal, although it has reportedly since decided to remain an independent company.
Honda CEO Toshihiro Mibe said the merger “is not about saving Nissan” – however Nissan will need to be successful in its “turnaround actions”.
More details on the proposed merger between Honda and Nissan are expected to be announced in mid-February after the initial late January timeline was missed – while Mitsubishi could also make its official decision this month.
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In December, Honda and Nissan said they intend to reach a mutual agreement by June 2025.
If the merger is given the green light, the brands intend to create a joint holding company listed on the Tokyo Stock Exchange in August 2026.
Honda’s proposal to acquire Nissan’s shares – rather than forming a joint holding company – follows its enquiry in January on whether Nissan would be in a position to buy out the rest of Renault’s stake amid concerns of foreign interference as the merger talks continue.
The Honda-Nissan merger would see it become the third-largest automotive group in the world, behind the Toyota group (almost 11 million) and the Volkswagen Group (nine million) but ahead of the Hyundai–Kia group (seven million).
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