Nissan Motor shares fell primarily by 5% on average after the Japanese newspaper Nikkei reported that the automaker decided to withdraw from negotiations with competitor Honda.
This news has caused a negative reaction in the market, as many expected the merging of the two largest automakers in Japan. It was suggested that the merger would cut production costs and strengthen the competitiveness of the companies in the global market.
However, Nissan, facing serious financial problems and declining sales, decided to abandon this initiative. Company representatives so far are refraining from comments, but investors and experts have already begun to discuss the possible consequences of this step.
"Nissan's decision to abandon the merger with Honda may affect the long-term development strategy of the company and its position in the global automotive market," noted a financial analyst in one of the interviews.
Similar actions by Nissan may also lead to changes in the relationships between the largest automakers in Japan and push other companies in the industry. In the near future, a detailed statement from Nissan about their further plans and development strategies is expected, which may shed light on the situation and stabilize the market.
