Honda Motor Firm, Ltd. HMC shares are buying and selling larger on Thursday. The corporate reported outcomes for 9 months and disclosed the termination of enterprise integration talks with Nissan Motor Co., Ltd. NSANY.
The corporate disclosed the cancellation of the beforehand inked memorandum of understanding (MOU) for enterprise integration with Nissan Motor.
Notably, final December, each corporations confirmed their merger plans at a joint press convention and mentioned they goal for a completion date of August 2026.
The businesses had been contemplating together with Mitsubishi Motors within the new consolidated firm. If profitable, the merger would have created the world’s third-largest car group primarily based on international gross sales quantity.
Since signing the MOU, each corporations’ administration groups, together with their CEOs, have evaluated the market surroundings, integration aims, and post-merger methods.
In addition they carried out consultations with key stakeholders earlier than making the choice to discontinue the discussions.
Throughout discussions, Honda proposed shifting from the initially outlined joint holding firm—the place it will appoint the vast majority of administrators and the CEO—to a construction through which Honda would change into the dad or mum firm and Nissan the subsidiary by means of a share alternate.
Nevertheless, each corporations decided that, given the necessity for fast decision-making and execution in an more and more unstable market pushed by electrification, it was finest to terminate the MOU.
Shifting ahead, Nissan and Honda plan to collaborate by means of a strategic partnership centered on intelligence and electrified autos.
With the termination of the deal, the non-public fairness agency KKR & Co. Inc. KKR is reportedly planning to put money into Nissan, as per Bloomberg.
Additionally, Foxconn Know-how Group confirmed Wednesday it will take into account buying Renault’s stake in Nissan as a part of a broader technique to increase its electrical car manufacturing enterprise.
HMC Outcomes: In a separate launch, Honda reported nine-month EPS of JPY169.69 (Japanese yen) ($1.1142), decrease than JPY176.78 within the comparable interval, whereas gross sales of JPY16.3 trillion rose 8.9% 12 months over 12 months.
The corporate maintained its steering for an working revenue of JPY1.420 trillion and a revenue attributable to homeowners of the dad or mum firm of JPY950 billion.
In the meantime, Honda raised the steering for FY25 gross sales by JPY600 billion to JPY21.600 trillion.
Value Motion: HMC shares are up 2.56% at $28.29 on the final verify Thursday.
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