A few months ago it was reported and even confirmed that Nissan, Honda, and (possibly) Mitsubishi were entering into a Memorandum of Understanding (MOU) to discuss an official merger between the 3 brands.
Nissan and Honda suspend merger talks
In a shock move, Nikkei Asia reported that Nissan and Honda had suspended the merger talks. According to the report, both companies were unable to reach an agreement based on the valuation of each entity that would be entering the new holding company.
Furthermore, Nissan also rejected Honda’s plan to make the former a subsidiary instead of an equal partner. This is a huge blow to the whole merger which in the past few weeks has also seen Mitsubishi bow out of the talks completely, and other various reports that claimed Honda had some big demands from Nissan.
Only time will tell now if talks will resume, but at the moment it seems a full agreement will not be reached anytime soon.
