Honda Motor Co (TYO:7267) and Nissan Motor (TYO:7201) are scrapping their merger plan after talks collapsed over Nissan's turnaround progress, Kyodo News reported Thursday, citing sources familiar with the matter.
Honda proposed making Nissan its subsidiary, but resistance from Nissan's board led to the deal's collapse.
The automakers had aimed to cut costs by sharing electric vehicle and software development but failed to agree on restructuring efforts. Nissan's planned job cuts and capacity reductions did not convince Honda of its recovery.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Price (JPY): $1438.50, Change: $+35, Percent Change: +2.46%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.