Honda and Nissan call off $60bn mega-merger plan

The mega-merger worth $60 billion between Nissan and  Honda has been called off, in part because of former’s pride and insufficient alarm about its predicament. writes Reuters, citing half a dozen sources.

This was revealed in a report by Reuters citing a dozen of sources.

The report hinted at bad blood on both sides. It said that the development also ties to Honda abruptly revising the terms of the merger and proposing that Nissan become a subsidiary.

Foxconn, the Taiwanese electronics giant, which has forayed into EVs recently, has said it may be interested in buying a stake in Nissan now that the merger is off.

Last year, the two Japanese automakers had revealed they were thinking ways to work together and formally announced the merger talks in December.

Their goal was to better survive the dramatic changes in the automotive sector.

If they had come together, they would have created the world’s third-largest auto company. The two firms were also planning folding in Mitsubishi, which — along with French automaker Renault — is currently in a strategic alliance with Nissan.