Merger Talks Falter Amid Structural Disputes Despite the strategic benefits of a merger—including cost savings and improved economies of scale—disagreements over corporate structure have added tension to the negotiations. Nissan reportedly opposed Honda's proposal for it to become a subsidiary rather than retaining some level of independence. The ongoing friction between the companies, coupled with new economic uncertainties, has cast doubt on their ambitious profit projections, which assumed Nissan's operating profit would triple by mid-2026. Adding to the complexity, Renault, Nissan's largest shareholder, has been pressing for a control premium, further complicating the deal. At Wednesday's closing price of 386.9 yen, Nissan's stock has dipped below the 400 yen Renault initially paid when the alliance was formed in 1999.