Honda muting offer to buy Nissan shares to survive competition with emerging US, Chinese automakers

Honda Motor is reported to making an offer to acquire Nissan Motor’s shares and make it a subsidiary as part of ongoing talks for possible business integration.

The two automakers started full-scale talks in December 2024 on potential merger though Nissan preferring equal partnership integration.

The integration talks began as the two Japanese automakers shared a sense of crisis that one company alone cannot compete with emerging US and Chinese makers, which are leading in the EV shift and automotive software development.

But a gap has apparently been emerging in talks between Honda and Nissan.

Honda is believed to be aiming to take control of management to make swifter decisions, including those related to business turnaround.

The firms initially said they aimed to set up a joint holding company that would be their parent company, but informed sources say Honda is now moving to make Nissan a subsidiary.

But negotiations are expected to face significant difficulties as Nissan has consistently stressed a partnership on equal terms, so there is strong internal opposition to Honda’s offer.

The companies say they plan to decide by around mid-February 2025 whether to proceed with further negotiations or not, taking into account the progress of Nissan’s restructuring efforts amid its worsening business performance.