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Honda and Nissan officially left the integration

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The agreement fell, in particular, due to Nissan’s disagreement to reduce labor and remove staff, asserted by the Honda.

Japanese auto giants Honda and Nissan Integration negotiations that can create a third largest car company in the world has stopped. The CNBC reported this on Thursday, February 13.

The companies say they are considering Different options for transactionsThat includes the Honda proposal to change the structure of the organization – to make the Nissan with its subsidiary by exchanging shares.

Despite the completion of negotiations, Honda and Nissan confirmed that they will continue Work in the field of intellectual and electrified cars.

Against this news, Honda’s promotion has grown 2.14%While Nissan’s papers disappeared 0.34%.

Why did the deal not occur

According to the data ReutersDealing fell because of:

  • Nissan’s disagreement to reduce labor and remove staff, which Honda insisted;

  • Nissan did not want to lose his freedom and become a Honda subsidiary.

Honda financial indicators

On Thursday, Honda reported the results of the third quarter:

· We are: 5.53 trillion Yen ($ 36.4 billion), an increase of 1.4% year by year.

· Operating profit: 397.8 Billion Yen (+4.6%).

Earlier, the media wrote that Honda and Nissan were arranging in deepening ties, including possible integration. Their organization can create a company that costs $ 54 billion with the annual production of 7.4 million cars, which will be the third largest by a car group worldwide.

Subsequently, it became officially known that Japanese automakers of the Nissan motor and Honda motor have signed a memorandum of understanding to start the business integration by creating a holder company.

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Source: korrespondent

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