It's a disaster for Nissan. The manufacturer's shares plummeted on the Tokyo stock exchange following the announcement that merger talks with Honda had fallen through. Apparently, it was Nissan that called off the talks.
Trading was abruptly halted. It is reported that Nissan terminated negotiations with Honda according to Japan's financial newspaper Nikkei. This led to a sharp decline in Nissan shares on the Tokyo stock market by 4.86%. However, trading was put on hold pending confirmation. In contrast, Honda stocks experienced a 12% rise in value. This reported rift between the two companies is supposedly caused by Honda's interest in acquiring Nissan shares, effectively making Honda a subsidiary, which reportedly Nissan has rejected. According to information from Japan's economic daily, this disagreement ultimately led to the merger's failure. The repercussions of this could be severe for Nissan, as the company is already facing difficulties. Initially, the goal was to form a Japanese conglomerate, also involving Mitsubishi, to create a dominant player in the automotive industry and lead the shift towards electric cars in the face of Chinese and Tesla's competition. None of the parties have issued an official statement.
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