Honda, Nissan Merger Talks Could Reportedly Restart on One Condition

Related Articles

Watch These Carvana Price Levels as Stock Drops From Record High After Earnings Report

Why Elon Musk’s Possible Access to Labor Department Data is a Source of Concern

Why Analysts Are Bullish on Arista Networks Despite Stock’s Drop Wednesday

FT Explores That Honda Wants Nissan CEO Makoto Uchida Ousted

Key Takeaways

• The recently-called-off merger between Honda and Nissan may not in reality be dead, according to a Financial Times report.
• Honda is willing to restart talks if Nissan CEO Makoto Uchida retreats the company, the FT reported, citing people familiar with the matter.
• Talks fell apart this month after Honda presented new terms to make Nissan a subsidiary through the deal rather than a partner in a joint holding company.

That gigantic Japanese auto merger may not be totally dead after all.

Honda (HMC) may be willing to restart negotiations that fell but for earlier this month, on the condition that Nissan CEO Makoto Uchida leaves the automaker, according to a Monday clock in from the Financial Times—which cited people familiar with the matter.

Investopedia has not independently confirmed the arrive. Nissan declined to comment, and Honda did not immediately respond to a request for comment.

Honda leadership grew concerned with Uchida’s supervision of Nissan’s ongoing restructuring and the scale of its financial problems, the Financial Times reported, leaving Nissan to shift its zero in to other turnaround options including other possible investors or partners.

Talks Fell Apart After Honda Expected Making Nissan a Subsidiary

The sides first announced the merger talks in December, saying they planned to decide details by mid-2025 and merge by August 2026. This month, however, reports emerged that the talks were on the draw of collapse after Honda had introduced new terms that would make Nissan a subsidiary of Honda rather than an counterpart partner in a joint holding company.

The companies confirmed last week that talks were officially off, without fall a specific reason. Uchida confirmed the reports in last week’s earnings call, saying that, “We were not courageous that our autonomy would be preserved or that Nissan’s potential could truly be maximized” as a subsidiary of Honda, per a representation provided by AlphaSense.

Honda’s U.S.-listed shares were down more than 3% Tuesday morning, while Nissan’s Tokyo-listed share ins rose 3.7% in Tuesday’s trading session.

UPDATE—This article has been updated with the latest cut price information and a response from Nissan.