Honda, Nissan, and Mitsubishi, some of the biggest names, not just in the Japanese car business but also in the global car market, have called their dream-like colossus of a merger deal.
Merger Called Off
The companies, initially Honda and Nissan, and later Mitsubishi, started talks over the deal in late 2024.
Had it been for the merger to go through, the combined entity would have transformed to become one of the largest car makers in the world, rivalling its fellow Japanese carmaker, Toyota.
This merger was estimated to be priced between USD 50-60 billion or around Rs 4 lakh crore, as per current exchange rates.
Rumbling over lack of consensus in the deal has been in the news for a while now. The official closure of talks will lead these companies vulnerable.
One of the biggest reasons behind the auto huddle emerged from the dominance of others, including Stellantis, Volkswagen, GM and Toyota.
Another factor that played a role is the EB transition, which many of these company have had a tough time doing. In the meanwhile, EV makers like Tesla, BYD and Geely have also dominated affairs in the electric car market.
How Have The Markets Reacted?
When we look at the market reaction to this news, all of the companies are listed at the Tokyo Exchange.
Mitsubishi Motors Corp
At first, when we look at Mitsubishi shares closed in green, with an unmistakable decline towards the end of the day.
At the end of the day, the company shares stood at JPY 396, having gained JPY 3 or 0.84 per cent.
Honda Motor Co Ltd
When it comes to Honda, the company shares also closed in green. However, like Mitsubishi, the company’s shares also experienced a steep decline by the end of the day.
The stock closed at JPY 1,434, with an increase of JPY 30 or 2.14 per cent.
Nissan Motor Co Ltd
Nissan shares however had a different story to tell. The company shares, like the others, experienced a steep decline towards the end of the day.
In addition, it closed in red with a decline of JPY 1 or 0.34 per cent, taking the overall value to JPY 415.
