According to Bloomberg, Foxconn (also known as Hon Hai Precision Industry) is holding off its interest in Nissan as the Japanese automaker explores a potential merger with Honda.
Citing people familiar with the matter, the report revealed that Foxconn’s decision to put a halt on a potential stake purchase comes after it sent a delegation to meet with Nissan’s biggest shareholder – Renault – in France last week. It was said Nissan rejected Foxconn’s bid approach previously.
For now, Foxconn isn’t giving up on its bid for Nissan and is currently waiting in the wings to see if there is any legitimate progress in a possible merger between Nissan and Honda before deciding on its next move.
A merger between the two Japanese automakers would create a company with a valuation of around USD54 billion that is capable of producing 7.4 million vehicles annually, placing it as the third largest automaker by sales behind Toyota and Volkswagen.
Both parties are already engaged in a partnership signed in August this year, which will see them collaborate on producing key components for electric vehicles (EVs) and develop artificial intelligence in automotive software platforms.
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