Honda Nissan merger can be scrapped for growth

Report shows Honda makes Nissan’s proposal adversely affect the Honda merger

Mergers are often challenging due to financial complexity, leadership conflicts and different work cultures. A related example is the Honda-Nissan merger, which did not move forward as expected. Although there is no official confirmation, the report shows that Nissan can meet with Japan’s second largest automaker Honda.

Nissan’s objection to its subsidiary

According to reports, Honda proposed Nissan to be the merged subsidiary. However, Nissan opposed the move because it did not match the original goal of the merger. Sources said Nissan’s board of directors had discussed the matter and decided to repeal the merger negotiations. However, so far, there is no official confirmation.

As mentioned earlier, the Honda-News Merger program benefits both brands. It will create the ability to improve, which will help Honda and Nissan improve their finances and products. As part of the merger talks, Nissan is required to buy Renault’s shares in the company.

The Honda-Nissan merger will create the world’s third largest automotive company worth approximately US$60 billion (Rs 5.22 crore). Honda is currently the second largest automaker in Japan with a market valuation of $51.9 billion. Nissan’s market valuation is about 1/5 of that number.

Impact on the stock market

The market responded to the Nikkei Business Daily report, which talked about stalled merger negotiations. Nissan shares fell more than 4% on the Tokyo Stock Exchange. Trading was subsequently suspended for stocks. Honda’s stock, by comparison, rose more than 8%. It seems that even shareholders are not that excited about the Honda-Nissan merger plan.

Honda and Nissan said in separate statements that the Nickelodeon Report has no connection with any official statements issued by the company. Both brands promise that they are willing to do the merger work in mid-February, and the progress may be in mid-February. Even a Renault spokesman said there was no official confirmation that the merger negotiations were over. Nissan is currently developing a turnover plan.

Its success will play an important role in determining the progress of the merger plan. Nissan aims to reduce its workforce by about 9,000 and reduce global capacity by 20%. Honda – The uncertainty in the news merger negotiations is at a time when the threat of our tariffs is imminent. Tariffs in Mexico will be hit harder than Honda and Toyota.

It seems that the proposal to make Nissan a subsidiary will be a challenge to the merger talks. From Honda’s perspective, this may be important because the company has to secure its own interests. Sources also indicated that Mitsubishi, which was previously willing to be part of the merger, may not join.

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