Honda Doesn’t Want Renault In Its Deal With Nissan
Honda Doesn’t Want Renault In Its Deal With Nissan
Honda is eyeing a merger with Nissan, but not Nissan’s French counterpart

Honda's proposed merger with Nissan is shaping up to be a high-stakes automotive chess game that could dramatically reshape the industry landscape. At the end of 2024, the Japanese automakers tentatively agreed to join forces, but the road ahead is anything but smooth.

The potential alliance has a massive wrinkle: Renault's 35.7% stake in Nissan. Honda wants nothing to do with the French automaker, viewing Renault as an unwelcome third wheel in this potential marriage. The company has boldly suggested Nissan buy back its shares from Renault - a move that could cost the already financially strapped Nissan a cool $3.5 billion.

Adding intrigue to the mix, whispers suggest tech giant Foxconn might be eyeing Renault's stake, which could completely derail Honda's carefully laid plans. It's like a corporate soap opera playing out in the automotive world.

If the merger succeeds, the combined Honda-Nissan-Mitsubishi group would be valued around $57 billion - impressive, but still a minnow compared to Toyota's $276 billion market cap or Tesla's trillion-dollar valuation.

The timeline? A decision is expected by January's end, with potential implementation not happening until late 2026. One thing's certain: this isn't your typical corporate merger - it's a high-stakes game of automotive musical chairs.

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