It seems the planned merger between Honda and Nissan has been suspended just a little more than a month after talks between the companies began, as Japan’s Nikkei reports that Nissan is walking away from the table.
According to the report Honda’s proposal would make Nissan a subsidiary of Honda — and these terms appear to be a sticking point. Instead, Nissan was reportedly angling for integration on equal terms, as the deal was initially framed when announced.
One of Honda’s conditions for equal integration, allegedly, was significant progress from Nissan on an internal restructuring program — one that hasn’t moved quickly enough.
Meanwhile, Mitsubishi is reportedly still weighing its options and intends to make a decision on its involvement in the deal by mid-February.
Both Honda and Nissan had originally planned to have a management plan sorted by the end of January, but are now also aiming for mid-February to sort things out by. A Nissan spokesperson provided that clarity on timing.
“The article is not based on information announced by Nissan,” the spokesperson said responding to the Nikkei story. “We aim to finalize our direction by mid-February and will announce it at that time.”
A Honda spokesperson added that the company is “currently in the process of discussing various matters, including the facts reported in the media.”
Neither Honda nor Nissan officially announced a suspension of talks, despite multiple sources informing Nikkei and Reuters of the latest developments. During the break, the Nikkei says the companies will consider alternative ways to integrate, particularly in the field of electric vehicles.
We’ll update this story as more information becomes available.