The merger between the two Japanese car giants Nissan and Honda may be on the verge of collapse. According to Japanese media reports, Nissan has rejected the proposal to instead function as a subsidiary of Honda, rather than the two companies merging.
The reports are now contributing to the two companies' shares moving in different directions on the Tokyo Stock Exchange. While Nissan is falling, Honda's share is surging strongly.
The background is the talks that began in December last year about a merger that was intended to result in the world's third-largest car manufacturer being formed.
