Nissan is likely to reject Honda offer in blow to tie-up plan

Nissan Motor Co. is prepared to reject an acquisition offer that would make it a subsidiary of Honda Motor Co., according to a person familiar with the matter, a move that could jeopardize talks between the two carmakers to join forces.The Yokohama-based company plans to convene a board meeting as soon as Wednesday afternoon, where it will likely vote down Honda’s proposal to buy Nissan’s shares and make it a subsidiary, said the person. The Japanese automakers have been in discussions for weeks on a combination that would effectively result in an acquisition of Nissan, as Honda’s $7.3 trillion yen ($47 billion) valuation is nearly five times higher.

The board’s final decision could still be in flux as some senior officials at Nissan support the Honda offer, the person said.

Honda rose as much as 3.2% in early trading in Tokyo on Wednesday. Nissan initially dipped before climbing 2.7%.Representatives for Nissan and Honda said they have not made any announcements about the state of the negotiations other than that they are ongoing ahead of the planned timing of mid-February for a deal framework.

The talks to create the world’s third-largest carmaker have gone haltingly since the plans were first announced in December. Honda and Nissan had pledged to put forward a framework for the transaction in late January, but recently pushed that back by several weeks. They aim to finalize the tie-up in June, before listing shares of a joint holding company in August 2026.

The two companies may end their talks after slow progress in board meetings each has planned, Japan’s Asahi newspaper reported earlier, citing unidentified sources.

Nissan is 36% owned by French carmaker Renault SA, which in late January sent representatives to Japan to express concern over the transaction and seek a premium for its stake, people familiar with the matter said.

Mitsubishi Motors Corp., which has reportedly decided against joining the alliance, said earlier this week it would make a final decision once Honda and Nissan reach an agreement later this month.