Japan’s Nissan and Honda have entered preliminary merger talks amid growing competition from China, two sources with knowledge of the matter told the Financial Times. According to interlocutors, as a result of the merger a holding company worth $52 billion will be formed.
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Negotiations between the companies are in an initial phase, the newspaper notes. The publication wrote that the merger will allow the two automakers to compete better in the face of competition from Chinese companies and declining consumer demand for electric vehicles.
Additionally, a potential merger could spark a political backlash in Japan as it risks leading to major job cuts in the country, said a Financial Times source familiar with the discussions.
Nikkei Asia also reported on the planned merger. According to this publication, Nissan and Honda will soon sign a memorandum of understanding and Mitsubishi, whose largest shareholder is Nissan, will participate in the merger.
Nissan and Honda told Nikkei Asia that they are “considering various cooperation options,” including a merger, but no final decision has been made.
In November, the Financial Times reported that Nissan had begun looking for an anchor investor to help it through a crucial year. In early November, Bloomberg wrote that the manufacturer would lay off 9,000 employees worldwide and reduce production by 20% due to falling sales of its cars and competition from Chinese companies as well as Elon’s Tesla. Musk.
Author:
Bogdan Muzychenko
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
