Major Japanese automakers--Honda and Nissan together announced plans to merge by 2026, marking a historic moment in the country's auto industry. US department store chain, Nordstrom announced plans to go private through a $6.25 billion buyout by its founding family and Mexican retailer El Puerto de Liverpool. Retailer Party City has filed for bankruptcy in the US. Britain's GDP data hinted that the economy did not grow in the third quarter of 2025. All this and more on the December 24 edition of World Street.
Joining hands
Honda and Nissan announced their plans to merge by 2026, marking a transformative move for Japan's auto industry as it faces growing competition from Chinese EV manufacturers. The merger would position the combined entity as the world's third-largest automaker by vehicle sales, following Toyota and Volkswagen.
This partnership aims to enhance scale and resource-sharing capabilities amid intense competition from Tesla and agile Chinese rivals like BYD. The merger of Honda, Japan's second-largest automaker, and Nissan, its third-largest, represents one of the most significant reshaping of the global auto industry. Mitsubishi Motors, in which Nissan holds a majority stake, is also considering joining the alliance and is expected to make a decision by the end of January, according to the companies.
Private party
Nordstrom announced on Monday its decision to go private through a $6.25 billion buyout deal led by its founding family and Mexican retailer El Puerto de Liverpool. The deal, unanimously approved by Nordstrom's board, is set to close in the first half of 2025. Under the agreement, the Nordstrom family will hold a 50.1 percent majority stake, while Liverpool will own 49.9 percent. Shareholders will receive $24.25 per share in cash for their Nordstrom stock, as detailed in a press release.
Going nowhere
Britain's economy showed no growth in the three months to September, according to revised figures from the UK’s Office for National Statistics (ONS) released on Monday.
An earlier estimate had reported a 0.1 percent GDP growth for the third quarter, but the final data confirmed stagnation quarter-on-quarter. The data adds to economic challenges for Britain, following a string of weak indicators that have cast doubt on the fiscal strategy of the newly elected Labour government.
Eeriness spreads
South Korea's consumer sentiment plunged in December, reaching its lowest level in over two years amid concerns over political uncertainty following the impeachment of President Yoon Suk Yeol.
The consumer sentiment index dropped to 88.4 from November's 100.7, marking its weakest point since November 2022, when a tragic Halloween crowd crush claimed 159 lives, according to the Bank of Korea's monthly survey. An index reading below 100 indicates growing pessimism among consumers about the economy.
Party's over
Retailer Party City, facing ongoing challenges since the COVID-19 pandemic has filed for Chapter 11 bankruptcy protection in the US for the second time in two years, as it plans to shut down its retail and wholesale operations. The retailer, known for over 40 years of selling party supplies from themed decorations to holiday costumes, stated that all 700 of its US stores will remain open during its going-out-of-business sale. The filing, made in the US Bankruptcy Court for the Southern District of Texas, indicated assets and liabilities between $1 billion and $10 billion, with over 10,000 creditors.
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