Key Takeaways
- The recently-called-off merger between Honda and Nissan may not in fact be dead, according to a Financial Times report.
- Honda is willing to restart talks if Nissan CEO Makoto Uchida leaves the company, the FT reported, citing people familiar with the matter.
- Talks fell apart this month after Honda introduced new terms to make Nissan a subsidiary through the deal rather than a partner in a joint holding company.
That massive Japanese auto merger may not be totally dead after all.
Honda (HMC) may be willing to restart negotiations that fell apart earlier this month, on the condition that Nissan CEO Makoto Uchida leaves the automaker, according to a Monday report from the Financial Times—which cited people familiar with the matter.
Investopedia has not independently confirmed the report. Nissan declined to comment, and Honda did not immediately respond to a request for comment.
Honda leadership grew concerned with Uchida’s leadership of Nissan’s ongoing restructuring and the scale of its financial problems, the Financial Times reported, leaving Nissan to shift its focus to other turnaround options including other possible investors or partners.
Talks Fell Apart After Honda Proposed Making Nissan a Subsidiary
The sides first announced the merger talks in December, saying they planned to finalize details by mid-2025 and merge by August 2026. This month, however, reports emerged that the talks were on the verge of collapse after Honda had introduced new terms that would make Nissan a subsidiary of Honda rather than an equal partner in a joint holding company.
The companies confirmed last week that talks were officially off, without giving a specific reason. Uchida confirmed the reports in last week’s earnings call, saying that, “We were not confident that our autonomy would be preserved or that Nissan’s potential could truly be maximized” as a subsidiary of Honda, per a transcript provided by AlphaSense.
Honda’s U.S.-listed shares were down more than 3% Tuesday morning, while Nissan’s Tokyo-listed shares rose 3.7% in Tuesday’s trading session.
UPDATE—This article has been updated with the latest share price information and a response from Nissan.