The share of the Japanese automaker Nissan collapsed on the Tokyo Stock Exchange after releasing information in the Japanese press to abandon its merger plan with Honda’s competitor, whose stock was launched.

Honda, the Japanese giant of the automotive industry, and Nissan, who is facing financial difficulties, began in December negotiations on the prospect of a merger that would create the third largest cars in the world in sales, after Toyota and Volkswagen The carmaker faces its serious challenges Tesla and the Chinese car industry, mainly in the electric industry.

The plan was establishment of a joint company entries with a place in the Stock Exchange. The details of the project were to be announced this month. Their aim was to complete the talks in June 2025 and set up a portfolio company in August 2026, when the shares of the two companies would be deleted. Under the plan, Honda would appoint the majority of the Board of Directors of the new entry company.

But many Japanese media published information that Honda was planning to acquire Nissan shares toDo not turn into its subsidiary.

The scenario This could not be accepted by Nissanwhose main concern was to maintain its autonomy. According to the financial newspaper Nikkei, Nissan preferred to interrupt the negotiations.

The publication of this information shook the markets: in the early hours of the afternoon, Nissan’s share declined 4.86% before interrupting its negotiation until the information was confirmed.

On the contrary, the Honda’s share launched by 12% and closed with Rise 8.18%.

“This report is not based on information provided by Nissan. We intend to finalize our position by mid -February, then we will proceed with the announcement. “ Nissan commented. The Group will publish the quarterly results on February 13th.

Honda avoided commenting.

The proposal to convert Nissan into a subsidiary makes the merger almost impossible, because such a scenario cannot satisfy the shareholders either on both sides, a Nissan official told Yomiuri.

The prospect of this cooperation was considered Gift from heaven for Nissan: Heavily indebted, recorded unexpected losses during the July-September quarter and its operational room almost disappeared.

In the two key markets its sales were downplayed: in the United States, due to the lack of hybrid models with which it would respond to a strong demand, and in China, due to the dominance of Chinese car electric cars in the local market.

Performing under pressure, Nissan has announced the cut of 9,000 jobs worldwide and reduce production.