Honda Motor and Nissan Motor are set to start talks a few potential merger, aiming to pool their assets in a bid to strengthen their place towards bigger world electrical car producers, in keeping with a number of media sources.
The talks, first coated by Nikkei newspaper on Tuesday, acknowledged the 2 corporations are planning to create a single holding firm and are anticipated to signal a memorandum of understanding shortly to formalise the merger.
The merger comes as conventional automakers face growing competitors from Chinese language EV producers, placing strain on legacy manufacturers which can be struggling to show a revenue from their electrical car initiatives. Honda and Nissan additionally plan to finally embrace Mitsubishi Motors, the place Nissan holds a 24% stake, beneath the brand new holding firm, probably forming one of many world’s largest automotive teams, in keeping with Nikkei.
The report acknowledged that the possession stakes of each corporations within the new entity, together with different specifics, will likely be decided at a later stage.
Written with the View : afaqs