Nissan may cancel merger talks with Honda: Report

The Japanese Nissan may finish integration discussions with Honda, according to a report. It is expected that the Nissan board members will soon spend their next steps.

According to a Reuters report, which was quoted by the sources, this development gives uncertainty about a merger that could lead to the third largest car manufacturer in the world through sales and ask questions about Nissan’s ability to move in its current challenges without external support.

The potential end news of the integration talks increased the shares of the two companies on Wednesday, as Honda’s shares increased by more than 2 percent and Nissan by 1.6 percent, despite a slight decrease in the Nikki 225 index in Tokyo.

Honda, the second largest car company in Japan, and Nissan, the third largest column, announced last year that it was holding incorporation talks, which would have had a major shift in an industry facing a competition from Chinese BYD and other new electric cars. However, the sources indicated that the discussions were complicated by the increasing differences between the two parties, according to the report.

According to the Nissan Board of Directors, the Nissan Board of Directors will end the integration talks after Honda proposed that Nissan made a subsidiary, a step that deviates from its initial discussions. Honda, which has a market value of approximately five times the value of Nissan, is increasingly concerned about Nissan’s progress in the recovery plan.

The Japanese newspaper Asahi Shimbun reported that the merger may be stopped. Representatives of the two companies refused to comment on the case of merger talks, but they stated that it would be issued in mid -February, as shown previously.

Nissan has faced greater challenges than some other car manufacturers in moving to electric cars, after they were not fully recovered from the crisis. Analysts suggest that definitions against Mexico can affect Nissan more than Honda or Toyota.

Renault, a long -term coalition partner in April, expressed his openness to integration with Honda. The French auto company has a 36 percent stake in April, including 18.7 percent through a French box.