Honda Motor Co.'s stock soared 5.48% in pre-market trading on Wednesday, as the Japanese automaker's potential merger with Nissan Motor Co. faced a major setback.
Reports emerged that Nissan is considering calling off the merger talks, which were initially aimed at creating the world's third-largest automaker by sales. The discussions have hit a roadblock over disagreements regarding control and governance issues.
According to sources familiar with the matter, Nissan's board is expected to meet soon to decide on terminating the merger discussions. This decision comes after Honda expressed interest in making Nissan a subsidiary, which Nissan viewed as a departure from the initial proposal of a "merger of equals."
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