Honda Warning: Nissan Must Buy Renault Shares To Continue Merger

The merger between Nissan, Honda, and Mitsubishi Motors was established at the end of last year. (Doc. Honda Global)

JAKARTA - Japan's automotive manufacturer mergers, Honda and Nissan, seem quite complicated, even according to a recent report, Honda is concerned about the potential influence of Renault on the merger plan.

Quoting from the Carscoops page, Tuesday, January 21, Renault itself currently owns 35.7 percent of Nissan's shares. However, the brand is specifically not included in the Honda-Nissan discussion, it's just that there was a conversation that would expand all options based on the best interests of the group and stakeholders.

Meanwhile, according to a recent report from Bloomberg, Honda briefly asked Nissan if the brand could acquire Renault's shares.

Based on unnamed sources, the manufacturer with the 'H' logo is concerned that Nissan could be the target of foreign influence if third parties take over the French brand's shares during negotiations. Concerns about the threat of foreign companies emerged from Taiwan Foxconn expressing interest in buying Nissan.

However, Renault's full share purchase is said to be difficult for Nissan. By the end of 2024, Nissan has cash and cash equivalents of around 1.52 trillion yen (IDR 159.78 trillion rupiah), and more than a third of that amount will be needed to buy Renault shares.

Earlier, former Nissan and Renault boss Carlos Ghosn said Renault might be open to selling his shares directly to Honda, which the local government wanted for the merger of brand three plus Mitsubition brands to remain under Japanese ownership.

Even so, Nissan still has to go through many obstacles before the deal can be formalized. Based on the latest report, Nissan needs to double his profit in the 2026 financial year to prove to Honda that they can be solid partners. If they can't, the merger probably won't happen.