The Deal is Dead

Honda-Nissan Merger Talks Hits the Brakes, for Good

I Know It’s Over

The two automakers are calling it quits after board meetings, formally ending their merger talks. Honda’s push to acquire 100% of Nissan’s shares was flatly rejected, deepening the rift between the companies and leading to the collapse of negotiations.

Both sides are spinning it as a decision to “prioritize speed and flexibility” but the reality was a power struggle. Honda wanted full control, and Nissan refused to surrender its independence.

Officially Over: Nissan, Honda, and Mitsubishi Motors terminate their Memorandum of Understanding (MOU), ending talks of a tripartite collaboration while pledging to continue working together in EV and tech development.

“A Lack of Effort… A Rushed and Costly Failure”

As NHK reported, auto analyst Seiji Sugiura didn’t hold back: “Both sides lacked real effort to make this happen. As negotiations go, it was rushed. Wasted potential in a once-in-a-century transformation. The deal failed because the business leadership wasn’t strong enough to pull it off.”

Honda had hoped to seize control of Nissan to accelerate its EV and software development. But the shift from a balanced merger to a full takeover bid only fueled distrust at Nissan, where executives felt Honda showed no respect for the alliance.

Double Duty: Nissan CEO Makoto Uchida presents financial results on the same day the automaker officially pulls the plug on merger talks with Honda. (Photo: Nissan)

Mitsubishi Takes a Bow

Nissan’s smaller alliance partner has also walked away. Known for building the legendary Zero fighter plane, Mitsubishi says it will continue working with both companies on software and EV technology.

What Happens Now?

For Nissan, there’s no safety net. The company is still struggling with deep restructuring, job cuts, and plant closures. Analysts say it will need to secure a new partner fast to stay competitive.

For Honda, the failure is a costly misstep in its bid to stand against Tesla, Toyota, and China’s rising EV powerhouses. It now faces a reset in strategy. It stands alone, facing Tesla, Toyota, and China’s rising EV giants without Honda as a major domestic partner.

One source familiar with the talks put it simply: “Honda’s last move, demanding full control, that was the deal-breaker. There was no coming back from that.”

Heard This One Before?

A saying comes to mind: 船頭多くして船山に登る “Too many rowers, and the ship ends up in the mountains.” But in this case, they never even got hold of the oars.