Honda and Nissan called off their merger talks because of wide differences in their expectations for a merged company, reports the Nikkei.

First, there was to be no mention of Nissan in the new holding company’s name  which would simply be called Honda Corporation.

Honda-Monkey led headlampSecondly, Honda expected Nissan to fire 40,000 of its 130,000 workforce.

Thirdly, the respective valuations put on the two companies was at a ratio of 5:1.

 

Fourthly, Honda would nominate the president of the holding company and the majority of its internal and external directors.

Fifthly, Nissan would become a subsidiary of Honda.Nissan Leaf

Lastly, Nissan could not convince Honda of the viability of its turnaround plan.

Foxconn, which is also pursuing Nissan, says it wants a partnership rather than a acquisition.