Japanese automaker Nissan plans to reject Honda's merger terms, as Honda has made a new proposal that Nissan considers "unacceptable". The Wall Street Journal writes about this, citing its sources.
In early December, the automakers announced a $54 billion merger plan. The plan called for the two companies to merge into a holding company, where both would be subsidiaries.
However, in recent days, Honda decided to change the terms and offered Nissan to become its subsidiary instead of an equal structure. Sources say Nissan considers the terms "unacceptable" and plans to reject it.
A board meeting is scheduled for Wednesday and the decision to cancel the deal has not been finalized. According to the source, Nissan and Honda will continue other collaborations that preceded the merger talks, including cooperation on software and electric vehicles.
If the merger plan collapses, it will increase pressure on Nissan, which needs to reassure creditors, employees and customers that it can survive in the face of fierce competition in the US and China. Nissan has been losing ground in both markets.
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