Nissan Prepared to Reject Honda's Acquisition Proposal
Deal News | Feb 05, 2025 | EIN
Nissan Motor Co. is set to reject Honda Motor Co.’s acquisition proposal, risking the cancellation of merger discussions that might establish a significant alliance between the two automotive giants. According to an insider, a board meeting at Nissan is slated to decide on this matter soon, with a high likelihood of rejecting the offer. Nissan’s valuation pales in comparison to Honda’s $47 billion, which is nearly five times higher, making Nissan a subsidiary if accepted. Some senior Nissan officials, however, are supportive of accepting Honda’s proposal. Despite this ongoing uncertainty, stock movements have shown Honda rising up to 3.2% and Nissan increasing by 2.7% in Tokyo. Talks, which were first announced in December, have faced delays with both companies aiming to finalize negotiations by June and list shares in a joint holding company by August 2026. French carmaker Renault, owning a 36% stake in Nissan, has voiced concerns and is seeking a premium in the transaction. Meanwhile, Mitsubishi Motors has opted to abstain from joining this potential alliance.
Sectors
- Automotive
- Mergers and Acquisitions
Geography
- Japan – Both Nissan and Honda are headquartered in Japan, and the article revolves around corporate decisions taking place in the country.
- France – Renault, a French company with a significant ownership stake in Nissan, is a participant in the developments.
Industry
- Automotive – The article focuses on two major automotive companies, Nissan and Honda, and their potential merger discussions.
- Mergers and Acquisitions – The discussion of Honda's intention to acquire Nissan and the ongoing merger talks classify the article under the M&A sector.
Financials
- $47 billion – The valuation of Honda Motor Co., which is nearly five times higher than Nissan's.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Nissan Motor Co. | Target company | Company | Japanese multinational automobile manufacturer, the target of Honda’s acquisition proposal. |
| Honda Motor Co. | Bidding Company | Company | Japanese public multinational conglomerate corporation known primarily as a manufacturer of automobiles, perceived as the acquirer in this potential merger. |
| Renault SA | Major Shareholder | Company | French multinational automobile manufacturer, holding a 36% stake in Nissan and involved in the transaction discussions. |
| Mitsubishi Motors Corp. | Potential Alliance Member | Company | Another Japanese automaker that has decided not to join the Honda-Nissan merger alliance. |