Japanese car companies Nissan Motor and Honda Motor begin merger talks The Kyodo agency reported this on Monday, citing a representative of the Japanese government, who added that the management has already been informed about their start.
This Monday, both companies, the two main ones in the Asian country, will hold a press conference at which they are also expected to announce the start of negotiations that will lead to the emergence of the third largest car manufacturer in the world In terms of sales volume it is also inferior to the Japanese Toyota Motor and the German Volkswagen AG.
Both companies plan will complete merger negotiations in June, after their launch this week, which was also reported by Kyodo, citing close sources, and Japanese public broadcaster NHK noted that the holding will be ready by the summer of 2026.
Representatives from both companies are expected to visit the headquarters of the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism this Monday to announce the start of negotiations.
Also today, Honda and Nissan will hold a meeting of the board of directors and They will sign a memorandum of understanding.
After the first information about a possible merger emerged last week, both admitted to independent statements. “Exploring various opportunities for future collaborationtaking advantage of the strengths of each,” but ruled out that what was stated in the media was “something stated by either company.”
In March Nissan says it is in talks with Honda about the possible creation of an alliance for the production of components and software for electric vehicles in order to reduce costs and increase their competitiveness in the context of the expansion of this market.
In August Mitsubishi Motors, of which Nissan owns 34%, has joined negotiations to join a hypothetical alliance.
Word of a possible merger that would split the Japanese auto industry into two large groups – a new joint venture and one created by Toyota – has emerged from the Taiwanese electronics giant. Hong Hai Precision Industry allegedly expressed interest in acquiring parts of Nissan.
The Yokohama firm will have accelerated his contacts with Honda According to Nikkei, the move is aimed at avoiding a bid from the Taiwanese company, also known as Foxconn, interested in its electric vehicle development capabilities as well as manufacturing technologies.
This Monday, Nissan shares fell almost 1% after a mid-session break on the Tokyo Stock Exchange, while Honda rose in price by about 1.5%.
(EFE)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
