Honda Nissan merger – Nissan to buy Renault’s shares?
Honda has reportedly urged Nissan to consider purchasing the shares held by France’s Renault, amid ongoing merger talks between the two Japanese automakers.
According to Bloomberg News, Honda has asked whether Nissan is capable of acquiring Renault’s stake, raising concerns about foreign influence if Renault’s shares are sold to another entity during merger negotiations.
Read more – Honda and Nissan Set to Merge, Eyeing World’s Third-Largest Automaker Status
Renault currently owns a 35.7 per cent stake in Nissan, which Bloomberg reports is valued at approximately 557 billion yen (NZ$6.4 billion).
The Nissan-Renault alliance, established in 1999 and later joined by Mitsubishi in 2016, saw Renault’s stake in Nissan peak at 43 per cent. However, this declined to 35.7 per cent following multiple share sales in 2023 and 2024. Despite the reductions, Renault remains Nissan’s largest shareholder.
Honda’s concerns have emerged alongside reports that Foxconn, best known for manufacturing Apple’s iPhone, is exploring ways to enter the electric vehicle market. Acquiring Renault’s shares in Nissan is reportedly among Foxconn’s strategies, following unsuccessful discussions with Nissan.
It remains uncertain whether Nissan is financially equipped to buy Renault’s stake. As of December 31, 2024, Nissan held approximately 1.52 trillion yen (NZ$17.4 billion) in cash and cash equivalents.
However, the company’s profitability has weakened. In November 2024, Nissan reported a 0.5 per cent operating profit margin for the first half of the Japanese financial year—a 90 per cent drop compared with the same period the previous year.
Executives from both Honda and Nissan have denied claims that the merger is meant to “save” or “bail out” Nissan.
During a media conference in December 2024, Honda CEO Toshihiro Mibe emphasized that the merger hinges on Nissan implementing effective recovery measures to address its financial difficulties.
