A proposed $58 billion merger to create the world’s fourth-largest carmaker appears on the verge of collapse after Honda made an unexpected proposal to turn Nissan into a fully owned subsidiary, according to three people familiar with the matter.
The two rivals announced discussions on a combination in December, but just over 40 days later the talks have already soured, as Honda faces shareholder and internal pressure to take full control of Nissan to turn around the ailing carmaker.
The latest proposal, delivered to Nissan at the weekend, deviates from initial plans to bring the two companies under a jointly owned holding company, a structure that would have provided room to retain Nissan’s brand and decision-making powers.
Original Article Published at Arstechnica
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