Nissan and Honda shares rise by cancellation of potential combination discussion

Shares Honda and Nissan Rose wondered on Wednesday after a local newspaper to call the combination talks of Japanese cars.

Both companies meet soon to stop the combination, Asahi Shimbun reportedreferring to sources.

Nissan’s shares rose by 7.4% and Honda to 4.2%.

Negotiations did not go as expected by Honda, which is a subsidiary company – an idea that the latter is facing, report said.

Higher stock prices reflect the reduction of close-term uncertainty for investors.

“However, the long-term road for both car manufacturers remains uncertain, which has more than one problem for each company,” Brauer told CNBC.

They announced official negotiations for companies merging in last DecemberDiscussions were held in June this year. Blockbuster combination would catapulted them The third largest carmaker in the world for sale.

Nissan’s strategic partner Mitsubishi In the planned compound, it was invited to participate in the merger with the decision of the Mitsubis It was reported to be held in mid-February or in the middle of the subsequent.

Analysts were not previously The merger was proposed as a result of the reconstruction of the Nissan’s financial difficulties and the French Union for a long time with Renault. In itself The second quarter reportNissan has discovered its intentions to erase 9,000 and reduce the global production capacity by 20%.

Transformation in the global automotive industry controlled by electric vehicles is broken for traditional cars.

Nissan has been especially In the largest market, challenged the United Statesas well as in China and other developing markets. The car manufacturer’s operating profit decreased by 90%, 94% in the first half of the fiscal year, and this was 94% compared to the same period last year.

Nissan and Honda did not immediately respond to CNBC’s commentary requests.

Here’s the full Asahi Shimbun Report.