The $60bn merger between Nissan and Honda to create the world’s third-largest carmaker looks on the brink of collapse this morning. According to reports from Japan, Nissan CEO Makoto Uchida met with Honda CEO Toshihiro Mibe today, and explained that he wishes to terminate their merger discussions. A break-up would scupper the deal which was announced last December, and was. Talks have appparently stumbled after Honda proposed that Nissan should become a subsidiary, which was not part of the original plan.
The AFP newswire reports:. Nissan’s board is in favour of abandoning merger talks with Honda, although calling them off has yet to be decided by executives at the two Japanese carmakers, a source close to the matter told AFP on Thursday. “The latest conditions put on the table by Honda are unacceptable for Nissan... It needs to be formalised, but basically, it’s over,” the source said. Honda has a market value of ¥7.6trn ($50bn/£40bn), about five times larger than Nissan’s ¥1.54trn ($9.8bn/£7.9bn).
AstraZeneca has reported a jump in annual profits boosted by strong sales of its cancer, lung and immunology treatments, a week after it decided not to go ahead with a planned £450m investment in Merseyside, prompting a series of recriminations with the government. Britain’s biggest drugmaker, which is also the largest listed company, said revenues rose by 21% to $54.1bn (£43bn) in 2024. Pre-tax profit jumped by 38% to $8.7bn last year on a constant currency basis.
The results statement did not mention last week’s decision to pull the plug on the expansion of its childhood flu vaccine factory at Speke, Liverpool, into a large vaccine hub, after it failed to agree the amount of state support despite months of wrangling with government. German factory orders have jumped, bringing some relief to Europe’s largest, and most beleagured, economy. Industrial orders jumped by 6.9% month-on-month in December, beating forecasts of a 2% rise, but were still 6.3% lower than a year ago.
Firms reported increased demand for large-scale orders such as aircraft, ships, trains, and military vehicles, where new orders were 55.5% higher than in November “due to several large orders”, statistivs body Destatis reports. Der reale #Auftragseingang im Verarbeitenden Gewerbe ist im Dezember 2024 gegenüber November 2024 voraussichtlich um 6,9 % gestiegen. Der Anstieg ist vor allem auf den deutlichen Anstieg im Sonstigen Fahrzeugbau mit mehreren Großaufträgen zurückzuführen. https://t.co/BhYWybonJW pic.twitter.com/MfC0FvGEhw.
Sterling is weakening a little this morning, as the City anticipates a cut to UK interest rates at noon. The pound, which hit a one-month high yesterday, has lost a third of a cent against the US dollar back to $1.2473. Bloomberg are reporting that Nissan is seeking a new partner as it prepares to end negotiations to form a joint holding company with Honda. They say:. The fresh ally would ideally be from the technology sector and be based in the US, the people said, asking not to be identified because the information isn’t public.
Although its sales are slowing globally, North America remains Nissan’s most important market and the wider shift toward electrification and automation is pushing all carmakers to seek alliances with high-tech industries. UK engineering firm IMI has revealed it has been hit by a cyber attack after hackers gained unauthorised access to its systems. In a statement to the City this morning, IMI said it is currently responding to a cyber security incident involving unauthorised access to the Company’s systems.
The London-listed company says:. As soon as IMI became aware of the unauthorised access, the Company engaged external cyber security experts to investigate and contain the incident. In parallel, the Company is taking the necessary steps to comply with our regulatory obligations. An update will be provided as and when appropriate. Such cyber attacks are a growing risk for companies; in recent years. Royal Mail, The Guardian and leading London hospitals have all been hit.
A report yesterday found that ransomware payments fell by more than a third last year to $813m (£650m) as victims refused to pay cybercriminals and law enforcement cracked down on gangs. The money markets currently indicate the Bank will cut interest rates three or four times this year. But some, such as Pimco economist Peder Beck-Friis, think it may cut faster, telling clients:. Looking ahead, we see room for deeper cuts than what financial markets expect. Trade uncertainty is rising, labour demand is falling, fiscal policy is tight, and the policy rate is well above our neutral estimate of 2-3%.
