Between Reality and Pride
The other day, news that Honda and Nissan Motor had called off merger negotiations became a major topic of conversation.
According to multiple media outlets, it seems that Honda's proposal to make Nissan a subsidiary—implying an "acquisition" rather than a "merger"—triggered a fierce backlash from the Nissan side. If the merger had been realized, it would have been a big deal that would have redrawn the industry map for global automakers.
On the other hand, from Nissan's perspective, conditions such as a new company name that did not include their own (which was reportedly in the proposal) and an unbalanced integration ratio were likely not terms they could accept.
The automotive industry is facing intensified competition due to the rise of Tesla and Chinese electric vehicle (EV) manufacturers, so it is clear that Nissan is in a disadvantageous position.
Following the collapse of these talks, harsh comments appeared online regarding Nissan, such as "Can they rebuild on their own?" and "They have too much pride and lack a sense of crisis." Perhaps the more history and brand recognition one has, the harder it is to let go.
M&A is truly difficult.
There have been many cases in the past where merger negotiations were called off after being announced or reported by the media.
For example, the 2010 merger negotiations between Shinsei Bank and Aozora Bank, the news of the management integration of Hitachi and Mitsubishi Heavy Industries in 2011, and the 2013 merger negotiations between Kawasaki Heavy Industries and Mitsui Engineering & Shipbuilding all ended in failure, with each company going its own way.
When companies merge, they must bridge various differences such as financial status, market capitalization, number of employees, and corporate culture.
Furthermore, the more history and tradition a company has, the larger its organizational scale, and the more intense the factional infighting between departments, the less likely it is that the company will be able to unite in one direction internally.
Integration sounds fine, but there is no such thing as a true merger of equals; usually, one side takes the lead. Therefore, negotiations are a tug-of-war between each other's pride.
This phenomenon is not limited to companies.
When facing harsh realities, the question of how individuals reconcile their self-esteem is always present.
I myself have low self-evaluation, but I have pride in my own way of life and my principles.
However, I also know well that if you misjudge reality, painful consequences await.
At important turning points in life, how to balance reality and pride…is quite difficult.
It turned into a story about myself again after the Honda-Nissan merger collapse, haha.
“Should I stick to my self-esteem, or should I face reality?”—as I ask myself this, my thoughts never end.
