Nissan and Honda have officially called off their plans to merge into a single automaker, less than two months after they confirmed the rumors that they were indeed looking to join forces. In an announcement, the companies said that they’d “agreed to terminate” the memorandum of understanding (MOU) they signed in December 2024. If they’d gone through with it and also brought Nissan-controlled Mitsubishi on board, the new entity would’ve had a net worth of around $50 billion.
The automakers said that their CEOs and other members of their management teams have discussed what they wanted to achieve with the merger, as well the structures they wanted in place after the integration. They explained that they considered various options when it comes to the final structure of the merged entity. Honda proposed several options, including establishing a joint holding company, wherein the automaker would be the one appointing the CEO and majority of directors. However, it also proposed a structure wherein Honda would be the parent company, whereas Nissan would be the subsidiary.
The Financial Times reported in early February that Honda presented the structure that would make Nissan its subsidiary as a “take it or leave it” offer. Majority of Nissan’s board members reportedly rejected the deal back then during a meeting, but Nissan chose to wait until mid-February to make a formal announcement. The automakers said that they chose to cease their discussions “to prioritize speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification.” They also said that they still have plans to collaborate “within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles.”