After the merger talks with Honda fell through, Nissan turned to the American technology industry, continuing to search for a "white knight."
Analysis suggests that for Nissan, abandoning its partnership with Honda is a gamble, as the company is currently facing a severe financial situation and is unlikely to attract many potential "white knights." If Nissan cannot find new partners to revitalize its operations, it may need to seek "rescue" similar to its past collaboration with Renault
Nissan Motor is facing a significant turning point.
On February 6, according to sources cited by Bloomberg, as the deal with Honda is likely to collapse, Nissan is seeking new partners. The sources also stated that Nissan hopes its new allies will come from the U.S. technology sector.
Following the news, Nissan's stock price rose by as much as 8.7%, closing up 7.29% today. A Nissan spokesperson stated that any details regarding negotiations with Honda will be announced as planned around mid-February.
Yesterday, the two companies stated that they are still discussing various options, including the possibility of terminating negotiations. Reports indicate that Honda had proposed to acquire Nissan and turn it into a wholly-owned subsidiary, but this was strongly opposed by Nissan. The scale of investment and restructuring demands have also become focal points of disagreement between the two parties.
Some analysts believe that for Nissan, abandoning cooperation with Honda is a gamble, as the company is currently facing a severe financial situation: an aging product line has led to significant price cuts, severely eroding profits. Financial reports show that Nissan's net profit for the first half of the fiscal year fell by 94%, and it announced plans to lay off 9,000 employees and cut one-fifth of its manufacturing capacity. Last November, Nissan also lowered its annual profit forecast by 70%. Analysts pointed out:
“This precarious financial situation is unlikely to attract many potential 'white knights'. After partially dissolving its 25-year strategic partnership with Renault, if Nissan cannot find new partners to revitalize its business, it may need to seek 'rescue' like it did with Renault in the past.”
Despite this, Nissan's large manufacturing business and well-known brand remain attractive. In December last year, Hon Hai Precision Industry had approached Nissan to discuss equity participation, but this was temporarily shelved due to Nissan's negotiations with Honda.
Currently, Nissan's board is urging CEO Makoto Uchida and other executives to develop a more comprehensive restructuring plan. The goal is to propose a more in-depth reform plan when announcing the third-quarter results on February 13. Citigroup analyst Arifumi Yoshida also warned that “Nissan may face further profit deterioration, and additional restructuring measures are crucial.”
