Nissan shares drop, Honda shares rise after merger talks end.
Nissan's shares fell 4.8% after reports of its withdrawal from merger talks with Honda over subsidiary proposals.
So check it out, Nissan just decided to call off the merger talks with Honda. This whole thing was supposed to create the world's No.3 automaker, but now Nissan’s in a tough spot. Their shares dropped over 4% before trading halted in Tokyo, while Honda’s shot up 8%, as investors seemed relieved. The talks got messy, with both sides having different ideas, and it turns out Honda wanted Nissan to become a subsidiary. That’s not exactly what they agreed to initially!
Now, here’s the kicker: Nissan is in the middle of a huge turnaround plan, trying to trim down 9,000 employees and cut capacity by 20%. But after Carlos Ghosn's scandal, they haven’t fully bounced back. Analysts are worried, saying, “Investors may get concerned about Nissan’s future.” Plus, Nissan is more vulnerable to potential tariffs, especially if Trump decides to hit Mexico. It seems like without a merger, Nissan’s got to figure out how to survive this crisis alone.
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