Nissan and Honda officially end talks, KKR eyes Nissan
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The news: The boards of carmakers Nissan and Honda have officially voted to end merger talks, raising questions around Nissan’s future.
The numbers: The merger would have created a $95.5 billion automaker, the third-largest in the world.
The context: The deal soured in early February after the companies failed to agree on acceptable terms. Notably, Honda had proposed making Nissan a subsidiary rather than the initially planned joint holding company.
Nissan remains in a weak position, as it undergoes a turnaround plan that includes slashing 9,000 jobs and 20% of its production capacity. The company holds an outdated product lineup which has forced it to roll out heavy discounts, and is exposed to potential incoming US-Mexico tariffs.
According to sources cited by Bloomberg, private equity giant KKR is mulling an investment in Nissan, and is in the early stages of considering an equity or debt injection to support the carmaker’s financial position.
Honda and Nissan, alongside Mitsubishi, are expected to continue their strategic partnership to collaborate on development of batteries, autonomous driving, software and electric vehicle technology.
The sources: Honda Nissan Joint Statement, Bloomberg
