Africa-Press – Kenya. Honda and Nissan have announced that they have canceled their merger plans as the talks between the two companies collapsed, Nissan announced in a statement on Thursday.
“Nissan, Honda, and Mitsubishi today agreed to terminate their MOU (memorandum of understanding) regarding the consideration of the structure for a tripartite collaboration, in light of the termination of the MOU signed on December 23 last year regarding the consideration of a business integration between Nissan and Honda,” the statement said.
“Going forward, the three companies will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles,” it added.
The merger talks, which began in December, collapsed due to a host of disagreements including Honda’s proposal that Nissan become a subsidiary, according to the Kyodo News Agency.
When they announced their intention to initiate merger negotiations at a news conference in December, Honda stated that ailing Nissan would have to increase its turnaround efforts as a condition for the acquisition.
In November, Nissan said that it would lose 9,000 positions worldwide and lower global manufacturing capacity by 20%.
However, Nissan’s proposals failed to persuade Honda that the struggling automaker is on pace for a successful recovery, according to individuals familiar with the situation.
The merger talks, if they were successful, would have created the world’s third-biggest automaker by volume.
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