Foxconn, the Taiwanese maker of iPhones and other electronics, has approached Nissan Motor Co. about taking a controlling stake, a person familiar with the matter said.
Foxconn, which has been investing heavily in factories to build electric vehicles, would be interested in the entire Pathfinder, Sentra sedan and GTR supercar maker, not just the Japanese company’s factories and equipment, the person said. The person spoke on condition of anonymity because the proposal has not been made public.
It’s unclear whether Nissan has had substantive discussions with Foxconn or whether it has rejected the Taiwanese company’s approach. A Nissan spokesman declined to comment. Representatives of Foxconn could not immediately be reached for comment.
News of Foxconn’s interest came as Honda Motor Co and Nissan Motor Co said they had entered talks about a potential merger that would better position the combined company to face competitive challenges around the world, including in China, where both automakers are suffering. The Nikkei reported that Foxconn’s interest in Nissan has accelerated actions by two Japanese companies amid concerns that Nissan could be vulnerable to a takeover by the Taiwanese company.
Executive Vice President Shinji Aoyama said on Wednesday that Honda was considering a variety of options, which could also involve a capital tie-up or the establishment of a holding company.
Reports of a potential deal capped a tumultuous month for Nissan, which has seen profitability plummet, its stock price drop, a management shakeup and a new restructuring plan. Affected by news of a possible Honda merger, Nissan’s stock price rose 24%, hitting a record high.
It would not be unprecedented for Foxconn to acquire a controlling stake in a Japanese company. In 2016, it acquired two-thirds of electronics maker Sharp Corp., giving it a range of benefits, including a well-known consumer electronics brand, LCD display capacity and intellectual property. Its interest has been slowly dwindling over time, but it remains the largest shareholder.
Japanese business publication Diamond Online reported Foxconn’s proposal earlier on Wednesday.
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