Honda Motor Company, Ltd. (NYSE:HMC) shares are trading higher on Thursday. The company reported results for nine months and disclosed the termination of business integration talks with Nissan Motor Co., Ltd. (OTC:NSANY).

The company disclosed the cancellation of the previously inked memorandum of understanding (MOU) for business integration with Nissan Motor.

Notably, last December, both companies confirmed their merger plans at a joint press conference and said they aim for a completion date of August 2026.

The companies were considering including Mitsubishi Motors in the new consolidated company. If successful, the merger would have created the world’s third-largest automobile group based on global sales volume. 

Since signing the MOU, both companies’ management teams, including their CEOs, have evaluated the market environment, integration objectives, and post-merger strategies.

They also conducted consultations with key stakeholders before making the decision to discontinue the discussions.

During discussions, Honda proposed shifting from the initially outlined joint holding company—where it would appoint the majority of directors and the CEO—to a structure in which Honda would become the parent company and Nissan the subsidiary through a share exchange.

However, both companies determined that, given the need for rapid decision-making and execution in an increasingly volatile market driven by electrification, it was best to terminate the MOU.

Moving forward, Nissan and Honda plan to collaborate through a strategic partnership focused on intelligence and electrified vehicles.

With the termination of the deal, the private equity firm KKR & Co. Inc. (NYSE:KKR) is reportedly planning to invest in Nissan, as per Bloomberg.

Also, Foxconn Technology Group confirmed Wednesday it would consider acquiring Renault’s stake in Nissan as part of a broader strategy to expand its electric vehicle manufacturing business.

HMC Results: In a separate release, Honda reported nine-month EPS of JPY169.69 (Japanese yen) ($1.1142), lower than JPY176.78 in the comparable period, while sales of JPY16.3 trillion rose 8.9% year over year.

The company maintained its guidance for an operating profit of JPY1.420 trillion and a profit attributable to owners of the parent company of JPY950 billion.

Meanwhile, Honda raised the guidance for FY25 sales by JPY600 billion to JPY21.600 trillion.

Price Action: HMC shares are up 2.56% at $28.29 at the last check Thursday.

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