Japanese automotive giants Nissan and Honda have called off talks on a potential merger that would have created the world's third-largest automaker. The two companies, along with their partner Mitsubishi Motors, have decided to terminate a memorandum of understanding that would have combined their efforts.

According to CNN, the deal between Nissan and Honda was valued at $60 billion and was aimed at strengthening the companies' competitiveness against the backdrop of growing competition from Chinese manufacturers, including BYD. The talks focused on creating a large corporation that could effectively address the new challenges posed by the automotive industry's shift to electric vehicles.

Despite optimistic initial statements, the companies have faced difficulties in discussing the structure of the future merger. Initially, it was planned to create a joint holding company, but Honda proposed a different model - it would become the parent company, and Nissan - its subsidiary through a share exchange. However, these changes did not find support in the companies, and as a result, a decision was made to terminate the negotiations.

Despite this, Nissan representatives confirmed that both companies would continue to cooperate within the framework of a strategic partnership, focusing on the development of intelligent and electrified vehicles. "We aim to create new value and maximize the corporate value of both companies," Nissan said, emphasizing the importance of this direction for future development.

The decision to terminate the negotiations took place against the background of global changes in the automotive industry, in particular in the context of the transition to electric cars and the growing interest in environmentally friendly technologies. Chinese manufacturers such as BYD are becoming increasingly powerful competitors, which is forcing traditional automakers to review their strategies and focus on innovation and technological development.

However, despite the breakdown in negotiations, Nissan and Honda have confirmed their commitment to a strategic partnership. This cooperation will focus on new technologies in the field of intelligent transportation systems and electric vehicles, which meets the modern requirements of the market.

This step is evidence that even large international companies, despite common interests, sometimes cannot find a common language in matters of unification. However, the breakdown of negotiations does not mean the end of cooperation, and, perhaps, in the future, both companies will return to discussing possible ways of interaction.