Nissan CEO Makoto Uchida has informed Honda CEO Toshihiro Mibe that he wants to cancel their memorandum of understanding (MOU) regarding potential merger discussions, according to a source familiar with the matter. The decision comes after Honda proposed making Nissan a subsidiary, which was not part of the original merger plan.
The two companies had announced plans in December to explore integration under a holding company, but growing differences have complicated the talks. Nissan is expected to formalise its decision to withdraw from the MOU at an upcoming board meeting before its third-quarter earnings announcement next week.