Transportation
Nissan Said Likely to Reject Honda Offer in Blow to Tie-Up
- Automakers at odds over proposal to make Nissan a subsidiary
- Slow progress in discussions to become world’s No. 3 carmaker
A Nissan Motor Co. X-Trail vehicle at the company's showroom in Tokyo.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Nissan Motor Co. is prepared to reject an acquisition offer that would make it a subsidiary of Honda Motor Co., according to a person familiar with the matter, a move that could jeopardize talks between the two carmakers to join forces.
The Yokohama-based company plans to convene a board meeting as soon as Wednesday afternoon, where it will likely vote down Honda’s proposal to buy Nissan’s shares and make it a subsidiary, said the person. The Japanese automakers have been in discussions for weeks on a combination that would effectively result in an acquisition of Nissan, as Honda’s $7.3 trillion yen ($47 billion) valuation is nearly five times higher.