Nissan Motor Co. has reportedly decided to abandon plans to integrate with Honda Motor Co. after the two Japanese automakers failed to agree on deal terms. The two companies will withdraw the memorandum of understanding signed in December last year regarding business integration negotiations. The decision came as the two companies were unable to agree on the valuation of both parties under a holding company.
Nissan also rejected Honda's proposal to make it a subsidiary.
Honda Motor rose in the short term, with the increase expanding to 8%; Nissan Motor plunged in the short term, turning from a rise to a fall of more than 4%.
Trading in Nissan Motor's Tokyo-listed shares was suspended.
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