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The envisioned merger talks with Honda reportedly halted when Nissan refused to concede control, preferring to negotiate from an equal standing despite their evident financial issues. Honda's frustration with Nissan's slow restructuring efforts has contributed to this breakdown. The stark difference between their market caps—with Honda valued at four to five times more than Nissan—further highlights Nissan's precarious position.
In light of Nissan's financial struggles, Honda's leadership has expressed its unwillingness to proceed without significant management changes, epitomized by Uchida's imminent departure. Initially resistant, Nissan's executive team is beginning to recognize that a merger, even at the cost of becoming a subsidiary, may be necessary for survival.