Honda Motor Company, Ltd. ( HMC ) shares are trading higher on Thursday. The company reported results for nine months and disclosed the termination of business integration talks with Nissan Motor Co., Ltd. ( NSANF ) .

The company disclosed the cancellation of the previously inked memorandum of understanding (MOU) for business integration with Nissan Motor ( NSANF ).

Notably, last December, both companies confirmed their merger plans at a joint press conference and said they aim for a completion date of August 2026.

The companies were considering including Mitsubishi Motors in the new consolidated company. If successful, the merger would have created the world’s third-largest automobile group based on global sales volume. 

Since signing the MOU, both companies’ management teams, including their CEOs, have evaluated the market environment, integration objectives, and post-merger strategies.

They also conducted consultations with key stakeholders before making the decision to discontinue the discussions.

During discussions, Honda ( HMC ) proposed shifting from the initially outlined joint holding company—where it would appoint the majority of directors and the CEO—to a structure in which Honda ( HMC ) would become the parent company and Nissan the subsidiary through a share exchange.

However, both companies determined that, given the need for rapid decision-making and execution in an increasingly volatile market driven by electrification, it was best to terminate the MOU.

Moving forward, Nissan and Honda ( HMC ) plan to collaborate through a strategic partnership focused on intelligence and electrified vehicles.

With the termination of the deal, the private equity firm KKR & Co. Inc. ( KKR ) is reportedly planning to invest in Nissan, as per Bloomberg.

Also, Foxconn Technology Group confirmed Wednesday it would consider acquiring Renault’s stake in Nissan as part of a broader strategy to expand its electric vehicle manufacturing business.

HMC Results: In a separate release, Honda ( HMC ) reported nine-month EPS of JPY169.69 (Japanese yen) ($1.1142), lower than JPY176.78 in the comparable period, while sales of JPY16.3 trillion rose 8.9% year over year.

The company maintained its guidance for an operating profit of JPY1.420 trillion and a profit attributable to owners of the parent company of JPY950 billion.

Meanwhile, Honda ( HMC ) raised the guidance for FY25 sales by JPY600 billion to JPY21.600 trillion.

Price Action: HMC shares are up 2.56% at $28.29 at the last check Thursday.

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