Honda and Nissan are reportedly in talks to merge and create a new automotive powerhouse. However, the deal faces a key hurdle: Renault's 35.7% stake in Nissan. Honda is concerned that if Renault's shares are acquired by a third party during the merger negotiations, Nissan could fall under unwanted foreign influence.
Honda and Nissan have reportedly agreed in principle to explore closer collaborations, potentially culminating in a merger. However, before such a significant union can materialize, several crucial details require negotiation. One pressing matter, according to Kyodo News, centers around Renault 's 35.7 percent stake in Nissan, valued at approximately 3.6 billion USD. Honda has reportedly inquired with Nissan about its capacity to acquire this stake.
The alliance between Nissan and Renault, established in 1999, expanded in 2016 with Mitsubishi joining the fold. Honda's primary concern stems from the potential for unwanted foreign influence over Nissan if Renault's shares were acquired by an external entity during the merger negotiations. Kyodo News, citing anonymous sources close to the situation, revealed this apprehension. Prior to the announcement of Honda's discussions with Nissan, rumors circulated regarding Hon Hai Precision Industry (Foxconn), the manufacturer of iPhones, expressing interest in a partial or complete takeover of Nissan. Foxconn envisioned leveraging Nissan's production capabilities to bolster its own ventures into the electric vehicle market. The Japanese government, however, would have been reluctant to permit one of its domestic automakers to fall under Taiwanese control. Honda and Nissan have indicated their intention to unveil the framework of their agreement by the end of the month. The target is to establish a separate entity encompassing both companies by August 2026. Nissan's financial standing raises questions regarding its ability to purchase Renault's stake. As of December 31st, Nissan's market value stood at approximately 1.56 trillion yen, while its cash and cash equivalents amounted to around 1.52 trillion yen. Nissan is currently grappling with financial challenges, partly fueled by a 94-percent decline in net profit during the first half of its fiscal year. These difficulties, which prompted the announcement of a 9,000-worker layoff and a 20-percent reduction in production capacity, have added urgency to the discussions with Honda
MERGER HONDA NISSAN RENAULT FOREIGN INFLUENCE AUTOMOTIVE INDUSTRY
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Honda and Nissan to Explore Merger, Aiming for Third-Largest AutomakerHonda and Nissan have agreed to explore a potential merger, which could create the world's third-largest automaker. The two companies, along with Mitsubishi Motors, plan to work towards a formal merger agreement by June 2025. The proposed merger aims to leverage their combined scale and resources to compete more effectively in the rapidly evolving automotive industry, particularly in the transition to electric vehicles.
Read more »
Honda, Nissan, and Mitsubishi to Explore MergerThe three Japanese automakers are in talks to combine into a single company, aiming to create the world's third-largest automaker by sales volume.
Read more »
Nissan and Honda to Explore Merger in Bid for StabilityNissan and Honda have announced plans to discuss a potential business integration, aiming to stabilize their operations amidst a challenging automotive landscape. The collaboration will involve exploring synergies across electrification, software-defined vehicles, and other areas, leveraging their combined expertise and resources. The merger, however, remains in the discussion phase.
Read more »
Honda and Nissan to Explore Merger, Forging Third-Largest AutomakerJapanese automakers Honda and Nissan have announced plans to merge, aiming to become the world's third-largest automaker by sales. The merger, which would also include Mitsubishi Motors, aims to address the industry's transition away from fossil fuels and challenges posed by electric vehicle development. A joint holding company is planned, with Honda initially leading the new management. The goal is to finalize the merger agreement by June 2026 and list the holding company on the Tokyo Stock Exchange by August 2026.
Read more »
Honda and Nissan to Explore MergerNissan and Honda announce potential merger to create the third-largest automaker globally. The companies aim for combined sales of $191 billion and an operating profit exceeding $19 billion.
Read more »
Nissan and Honda Explore Merger to Create Third-Largest AutomakerNissan and Honda have agreed to explore a potential merger, aiming to create a joint holding company that would become the world's third-largest automotive group. This move comes amid increasing competition in the electric vehicle market.
Read more »