Nissan and Honda have publicly acknowledged the possibility of a merger, sparking significant interest in the automotive sector. According to a statement from Nissan and various media reports, the two companies have been in discussions regarding a potential merger for months, although no final decisions have been made.
Nissan shares experienced a dramatic increase of nearly 24% in Tokyo, while Honda’s shares dipped by about 3%. The Tokyo Stock Exchange initially planned to halt trading of Nissan shares until the reports could be confirmed, but later reversed this decision.
In addition to the merger talks, Taiwan’s Foxconn, known for manufacturing iPhones, has reportedly shown interest in acquiring a stake in Nissan, as reported by Bloomberg and other outlets.
The collaboration between Nissan and Honda is seen as a strategic move to strengthen their position in the competitive electric vehicle (EV) manufacturing market. Both companies are considering investing equity in a holding company for a combined entity, which could also involve Mitsubishi Motors, a company partially backed by Nissan.
Analysts from UBS have described a potential merger as a sign of much-needed consolidation and industry capital efficiency in the rapidly changing automotive industry. They believe that automakers will continue to seek tie-ups to remain competitive.
Honda and Nissan have a history of collaboration, having announced earlier this year that they would work together on parts of the EV business, with Mitsubishi joining the effort in August.