Honda and nissan end merger talks, say they will continue to ‘collaborate’

Japanese automakers Honda and Nissan Said ChiursdayThey would terminate merger talks, ending speculation over the fate of a $ 60-billion deal that was stated to create the world’s third-largest auto company by sales Volmes.

They said “Various options” Were Considered Including A Proposal by Honda to Change The Structure of the Merger from a Joint Holding Company to one with Honda as the Parent and Nisan as a Subsidi .

The two companies said they will “collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles.”

Reuters on Feb. 6 Had reported that nissan “looks set to step back from” Merger Talks with Honda.

Shares of Honda Gained 2.14% Thursday, While Nissan’s Stock Slipped 0.34%.

The Merger Fell Apart Due to Nissan’s “Pride and Denial,” As Well as its refusal to Close Factories, while Honda’s Move to Make the Carmaker its subsidian further t. Honda was also reportedly pushing for deaper staff cuts at nissan.

In December, Honda and Nissan Began Merger Discussions to Create the World’s Third-Largest Automaker by Vehicle SalesWith talks set to conclude in June.

In a news conference in December, Honda Ceo Toshihiro Mibe Had said that the deal aimed at sharing in inteligence and resources and delivery Economies of scale and synergies white brands.

Nissan shares Rocketed 24% on dec. 18 Over media reports about the merger, marking the stock’s best day since at least 1985.

The merger was announced a month after nissan posted downbeat results for its second quarter ended September, and Reveled That It would slash 9,000 jobs and cut global production capacity by a fifth.

Separately, Honda on Thursday Reported Its Third -Quarter ResultsWith Revenue Coming in at 5.53 trillion yen ($ 36.4 billion), up 1.4% year on year. Operating Profit rose to 397.8 billion yen, a 4.6% Gain compared to the same period last year.