Nissan and Honda Shares Rise as Report Says Automakers May Call Off Merger Talks

Shares of Honda and Nissan Rose Wednsday after a Local Newspaper Reported that Japanese Automakers was considering calling off their merger talks.

The boards of both companies are meeting songs to table the termination of the merger, Asahi shimbun reportedCiting sources.

Shares of Nissan Rose as Much as 7.4%, While Honda Climbed as High as 4.2%.

The talks were not going as expected by Honda, which had proposed Making Nissan A Subsidiya – an idea that the latter was opposed to, The report Said.

The Higher Stock Prisis Reflect Reduced Near-TerM Uncertainty for Investors, said Karl Brauer, Executive Analyst at Automotive Search Engine and Research Firm EiseeCars.

“But the long-term path for bot automakers remain uncertain, with multiple issues for economy to address,” Brauer Told CNBC.

The companies had announced official negotiations to merge last DecemberAnd discusations were set to conclude in June this year. The blockbuster merger would have catapulted them to the World’s Third-largest carmaker by sales,

Nissan’s strategic partner Mitsubishi was also invited to participate in the planned merger, a decision that mitsubishi was Reportedly slaged to make in mid-February or later.

Analysts Had Previously said That the merger was proposed as a result of nissan’s financial deficulties and the restructuring of its long-set-set alliance with france’s renault. In its Second-Quarter ReportNissan Reveled Intenses to Slash 9,000 Jobs and Decrease Its Its Global Production Capacity by 20%.

A transformation in the global auto industry, driven by the advent of electric vehicles, has been disruptive to traditional automakers.

Nissan particularly has been Challenged in its largest market, the USAs well as in China and other emerging markets. The Automaker’s Operating Profits Fell by 90%, and Net Income Declined by 94% in the first half of fiscal year 2024, compared to the same period last year.

Nissan and Honda did not immMIDIELY Respond to CNBC’s requests for comments.

Here’s the full Asahi shimbun report,