Honda Motor Co. and Nissan Motor Co. have raised doubts about their agreement to explore a merger, less than two months after the initial discussions.
Both companies issued statements on Wednesday, acknowledging that they are reviewing various options, including the possibility of withdrawing from talks. This follows a report from Nikkei newspaper claiming that Nissan is considering pulling out due to unresolved terms between the two companies.
A collapse of the Honda and Nissan merger talks would be a significant setback for Nissan, which has struggled in recent years due to weak leadership and a lack of competitive products.
Honda, valued at $51.9 billion, is nearly six times larger than Nissan, which has seen its market value decline. Honda’s shares rose 8.2% on Wednesday, while Nissan’s fell 4.9%, leading to a suspension of trading. Shares in Nissan’s major shareholder, Renault, also dropped by 3.4%.
The two companies have postponed plans for an update on their potential merger, which is now expected around mid-February. Tensions rose after Honda proposed acquiring Nissan and making it a subsidiary, a suggestion that faced strong opposition within Nissan.
Renault, which owns 36% of Nissan, expressed concerns about the deal and indicated it would seek a premium for its stake. Mitsubishi Motors, which had been considering joining the alliance, is awaiting a final decision from Honda and Nissan.
