Nissan says ‘No’ to Honda’s merger terms—Shaking up the auto market as stocks react sharply
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Why did Nissan reject Honda’s offer?
The main reason behind Nissan’s decision is the change in deal structure. When discussions first began in December 2024, the plan was to create a joint holding company where both automakers would have equal control. However, Honda’s latest proposal suggests that Nissan would operate under Honda, effectively making it a subsidiary. Nissan’s leadership is strongly opposed to this idea and is unwilling to accept a position of lower influence in the partnership.
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What would this merger have meant for the auto industry?
Had the merger gone through, the combined Nissan-Honda group would have become the third-largest carmaker in the world, behind Toyota and Volkswagen. Together, the companies produce nearly 10 million vehicles annually and have a strong presence in Japan, North America, and Europe. The deal was expected to help both automakers compete in the fast-changing electric vehicle (EV) market.
How has the market reacted?
Investors have responded quickly to the news. Nissan’s stock fell by 4.9%, while Honda’s shares gained 8.2%. This suggests that investors believe Honda may be in a stronger position without the merger, while Nissan could face challenges in the future.
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