In a surprising turn of events, the merger talks between Japanese automakers Honda and Nissan have come to an end. Nissan announced on Thursday that it had agreed to cancel a non-binding agreement of intent, originally set to be signed in December.
The initial goal of the negotiations was to establish a listed holding company in Tokyo, with Honda and Nissan as its subsidiaries, potentially creating the world’s third-largest automaker by sales.
However, the two companies ultimately concluded that in a “increasingly volatile market environment” and with the advent of electrification, it would be more sensible to discontinue the talks. Instead, Nissan and Honda will now collaborate under a strategic partnership, the statement said.