Honda is being urged by the Japanese government to acquire Renault's 35.7% stake in Nissan to prevent foreign influence and protect Japanese automotive interests. This move comes as Nissan faces financial difficulties and struggles to buy back Renault's shares on its own. While Honda is reportedly reluctant due to a lack of synergies, the Japanese government sees the merger as crucial to safeguard the nation's automotive industry from foreign entities like Foxconn. Renault has indicated it will consider all options in the best interest of the group.
, stated that Honda is pushing its potential partner to buy back Renault ’s stake in the company to prevent foreign influence.
Renault and Nissan are of course part of a longstanding 26-year alliance, rescuing the latter from another near-bankruptcy. While the French carmaker has been whittling down its stake, its holding in Nissan still stands at 35.7%, valued at approximately US$3.6 billion . Ironically, Nissan may be too broke to buy itself out. Its cash and cash equivalents only stand at around 1.52 trillion yen and it will need more than a third of that to purchase Renault’s stake.
Former Nissan boss Carlos Ghosn has previously said that Renault may be open to selling its stake directly to Honda, which will at least be a crumb of comfort for Nissan. He has, however, been, calling it a “desperate move” that lacked obvious synergies between Nissan and Honda and suggesting that Japan’s influential ministry of economy, trade and industry forced Honda’s hand.
Not feeling sympathy for Nissan though, because Nissan’s Japanese directors dug themselves into this hole when they betrayed Ghosn.people need to understand this merger/buyout is actually not Honda’s wish. it’s government pressure as japanese pride will be hurt if nissan is sold to a chinese company. WW2 mindset still in Japanese heads.Nah..when u are smart and have ‘presence’ no need to spend your own money. There is always someone ‘willing’ to pick up your tab.
Automotive Industry Mergers And Acquisitions Renault Nissan Honda Japanese Government Foreign Investment
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