Top Japanese carmakers Nissan Motor and Honda Motor are understood to be exploring a blockbuster merger, as the two rival companies seek to stay competitive on the road to full electrification.
Nissan Motor CEO Makoto Uchida listens to Honda Motor CEO Toshihiro Mibe attend a joint press conference on March 15, 2024 in Tokyo, Japan.reported overnight, citing sources close to the matter and noting that the domestic peers expected to sign a memorandum of understanding shortly. "It's been struggling in the market, it's been struggling at home, it doesn't have the right product line-up. There are so many warning signs, so many red flags around Nissan at the moment that something had to happen," he added. "Whether this is the answer is another question.
Employees work on the assembly line of new energy vehicles at a factory of Chinese EV startup Leapmotor on April 1, 2024 in Jinhua, Zhejiang Province of China.'s Akira Kishimoto shared similar views on some of the barriers to a prospective Nissan-Honda merger, saying "the hurdles to overcome would be high."
"This tie-up is not entirely unexpected because obviously they announced their partnership earlier this year," Lucinda Guthrie, executive editor at Mergermarket, told CNBC's "Street Signs Europe" on Wednesday.making an approach to Nissan. Now, with this particular transaction, I question whether it is going to be a hardcore merger or whether it is going to be more of a partnership," she added.
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