At the end of 2024, automotive Nissan and Honda They signed a worldwide agreement to initiate conversations and considerations with a view to business integration between the two companies through the establishment of a joint holding company.
The fusion of these companies – which included Mitsubishi – It would imply the creation of the third automotive of the world in volume, with sales for US $ 52,000 million.
However, Japanese company Nissan would have canceled fusion negotiations with its Honda rivalas announced today by the Nikkei newspaper, raising doubts about its ability to overcome a solo crisis.
After the publication of this information, Nissan’s shares fell 4.8% in Tokyo. Instead, Honda’s titles rose 12%.
The Tokyo bag then suspended the price of Nissanclaiming that it was necessary to confirm the veracity of the information about the end of the negotiations.
The fusion between Nissan and Honda worldwide is in danger
A spokesman for Nissan He said that this news “does not correspond to any information announced by the company” and said that it plans to make public its official position on the state of the negotiations in the middle of the month.
Another Honda spokesman spoke in similar terms by pointing out that this information does not come from the company and reiterated that “there is no change” regarding the announcement made by both firms last Friday.
A failure of negotiations would mean a problem for Nissan, which had his Japanese pair like lifeguard. Its position in the world automotive industry has been constantly deteriorated during the last half decade due to a little competitive product line. With 7.92 billion yen (US $ 51,900 million), Honda is valued in 5.5 times the market capitalization of Nissan.
The Japanese automotive manufacturer Nissan Motor announced a little over a month ago 9,000 jobs cut worldwide and a reduction in its production capacity of 20 %, with a view to improving its liquidity and profitability after the sharp worsening of its semiannual financial results.
The second largest Japanese manufacturer in the sector and a member of the alliance with Renault and Mitsubishi He made these restructuring measures public during the presentation of his results for April-September, which reflected a fall in their net profit of 93.5 % compared to the same semester of last year.
The results of the second quarter of fiscal year 2024/25, which covers the months of July to September, illustrate the magnitude of the financial problems that Nissan faces.
During this period, the company reported an 85% drop in its operational benefits, reaching only 32.9 billion yen.
This is a result that stood below expectation.
Given this scenario, the CEO of Nissan, Makoto Uchidaexplained in a statement that the company is implementing a series of settings to optimize its operations.
Meanwhile, executives of Renault They traveled to Japan this week to meet with their counterparts from Nissan In an effort to maximize the value of the participation of the French car manufacturer in the Japanese firm before its merger with Honda, a source close to the negotiations said.
Source: Ambito
