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    Home - Business - Renault Rejects Honda-Nissan Merger Over Unacceptable Terms
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    Renault Rejects Honda-Nissan Merger Over Unacceptable Terms

    By vikasNo Comments2 Mins ReadFebruary 13, 2025
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    Renault Rejects Honda-Nissan Merger
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    According to Bloomberg, Renault SA, the biggest owner of Nissan Motor Co., has rejected the proposed Honda-Nissan merger after calling the terms “unacceptable”. This is because, although Renault holds a 36% stake in Nissan, it demanded a premium to give up control, which the deal did not provide. This was, nevertheless, presented as a merger, not an acquisition, as both companies sought to address the global challenges and strong rivalry from Chinese electric car makers. However, this structure was a concern as the plan sounded like an acquisition by Honda and not a merger since Honda would have controlled the majority of the merged company and would have chosen most of the directors. This is not surprising as Nissan is still recovering from the crisis that erupted in 2018 when its then-Chairman, Carlos Ghosn, was arrested. Nissan is also expected to be negative this fiscal year as well as in the past. Although the company turned down the merger offer, Renault stated that it still endorses Nissan’s transformation plan and will keep on with the joint alliance projects. The current world automotive industry is also very fierce and thus companies such as BYD are becoming a threat. Given the current situation in the market, it is possible that Renault and Nissan will choose to partner rather than merge in order to stabilize the market and improve their standing.

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