Nissan and Honda have officially announced merger talks, in what would make the new partnership the world’s third-largest automaker.
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Conway Gittens: Wall Street is looking to put the chaos of last week behind it as lawmakers clinched a deal to keep the government funded through March. On the corporate front, the Nordstrom family is taking its eponymous department store chain private in a $6.25 billion deal. By doing so, it will allow the family to revitalize the brand without the scrutiny of outside investors and analysts.
In other dealmaking news, it’s official; Honda and Nissan are holding merger talks to create the world’s third biggest automaker. The combined entity would be worth $54 billion, with annual auto production of 7.4 million vehicles. Only Toyota and Volkswagen will be bigger.
The Honda-Nissan merger is being done out of necessity. Tesla and Chinese automakers like BYD have changed the game, resulting in a price war that’s wiping away profits, and pushing low-performing automakers to the brink. Honda and Nissan will team up in order to better compete, reduce operational costs, share technology, and move quicker on new car development.
In a statement, Nissan CEO Makoto Uchida said “Together, we can create a unique way for customers to enjoy cars that neither company could achieve alone.”
This will be a complicated deal with many stakeholders having their say. French car maker Renault is Nissan’s biggest shareholder, meanwhile, Nissan is the biggest shareholder of Mitsubishi Motors.
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