US EditionNissan to Reject Honda’s Merger Terms, Putting Deal in Peril
- Honda Motor Co has proposed that Nissan Motor Co become its subsidiary, which could alter their merger plans, according to sources familiar with the matter.
- Nissan has not convinced Honda of its business turnaround, which was a condition for their planned merger, as stated by the sources.
- Honda has requested Nissan to provide specific measures for the merger, but has been dissatisfied with the responses, according to the sources.
- Nissan President and CEO Makoto Uchida emphasized that any agreement would be a merger of equals, while a Nissan executive opposed the subsidiary proposal, stating, 'There can be no other option than what was agreed in December last year.
75 Articles
75 Articles
Fox Business
smallbizsage.comNissan, Honda respond to reports of potential merger being scrapped
Nissan and Honda responded on Wednesday to reports that a potential merger of the companies could be at risk of being abandoned.The Wall Street Journal, citing people familiar with the matter, reported that Nissan was weighing backing out of the memorandum of understanding with Honda and other options after the company found terms put forward by Honda to be "unacceptable." Nissan planned to reject an idea Honda had of Nissan being one of its sub…
Due to the tough competition in electric vehicles, Japan's second and third largest car manufacturers are planning a merger. But there seem to be more than just problems with the valuation of the two companies.
Actually Nissan and Honda wanted to merge into the third largest car company in the world. But the two companies probably don't fit together so well.
Coverage Details
Bias Distribution
- 47% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
