Honda and Nissan end merger negotiations, saying they will continue to “cooperate” | Real Time Headlines

Japanese automaker Honda and Nissan Said Thursday They will terminate merger negotiations and end speculation about the fate of a $60 billion deal that plans to create the world’s third largest auto company by sales.

They said “various options” considered Honda’s proposal to change the merged structure from United Holdings to a company with Honda as a parent, while Nissan as a subsidiary through stock exchanges.

The two companies said they will “cooperate within the framework of a strategic partnership targeting the era of intelligence and electric vehicles.”

Reuters February 6 It is reported that Nissan “looks to back off” the merger dialogue with Honda.

Honda shares rose 2.14% on Thursday, while Nissan shares fell 0.34%.

The merger collapsed due to Nissan’s “pride and denial” and refusal to close the factory, and Honda’s move to make the automaker’s subsidiary further cover up the fate of the deal, Reuters reported. Honda is also reportedly pushing for deeper layoffs at Nissan.

In December, Honda and Nissan began to merge and discuss Create the world’s third largest automaker through vehicle salesthe talks will end in June.

Honda CEO Toshihiro Mibe said in a December press conference that the deal is designed to share intelligence and resources and provide scale and synergy while protecting both brands.

Nissan Stocks 24% rise on December 18 Reports about the merger in the media mark the best day for stocks since 1985.

The merger was a month after Nissan released a decline in the second quarter ended in September, Revealed this It will cut 9,000 jobs and cut global productivity by one fifth.

Honda reported separately on Thursday Third quarter resultsrevenue was 5.53 trillion yen (US$36.4 billion), up 1.4% year-on-year. Compared with the same period last year, operating profit increased to 397.8 billion yen, an increase of 4.6%.