Nissan, Honda Merger Talks Near Collapse Amid Disagreements

Shares of Honda and Nissan surged after reports indicated that their proposed merger might be abandoned due to Nissan's opposition to Honda's proposal of making it a subsidiary. Both companies' boards are expected to meet soon to discuss terminating the merger talks, which were initially aimed at creating the world's third-largest automaker. The merger was proposed in response to Nissan's financial struggles and increasing competition in the electric vehicle market, particularly from companies like BYD and Tesla. Analysts suggest that if the merger falls through, it could significantly strain Nissan, which has already faced substantial losses in recent quarters. The complexities of Honda's higher market value compared to Nissan and the uncertain landscape of U.S. trade policies also add to the challenges of the discussions. Observers are awaiting a definitive announcement regarding the merger's fate by mid-February.