Foxconn Ramps Up Efforts To Buy Nissan Shares

Foxconn has confirmed discussions about acquiring Renault’s stake in Nissan after the proposed merger with Honda has all but officially fallen apart.

However, the company contrasted itself against Honda's intentions, saying it's not interested in outright acquisition, but rather cooperation on electric vehicle production. The Taiwanese electronics manufacturer, best known for assembling Apple’s iPhones, is expanding into EV contract manufacturing and is reportedly in talks with multiple automakers, according to the Financial Times.

“We did have talks about acquiring a stake in [Nissan],” Foxconn chair Young Liu told reporters on Wednesday in the company’s first confirmation of the talks. “If [taking a stake] is necessary for cooperation, we will consider it, but buying shares is not our main goal. Our main goal is cooperation.”

Talks with Nissan have gained new momentum following the breakdown of merger discussions between Nissan and Honda, which had aimed to create the world’s fourth-largest automaker.

Foxconn has been pursuing contract EV manufacturing deals outside Taiwan, but agreements with either Nissan or Renault would mark its first major partnership with a traditional global automaker. Liu expects an announcement regarding a potential deal should come within the next two months.

Meanwhile, Nissan faces mounting pressure as it struggles to compete with Chinese EV manufacturers and has lagged in capitalizing on the hybrid vehicle market in the U.S. The company is implementing a restructuring plan that includes cutting 9,000 jobs and reducing production capacity by 20%. The uncertainty surrounding its future has contributed to a 13% drop in Nissan’s stock value this year.

Renault, which holds a 36% stake in Nissan, has gradually reduced its ownership as part of a restructuring of the long-standing alliance between the two companies. While Foxconn has reportedly resumed discussions with Renault about acquiring shares held in a French trust, FT notes Nissan does retain the first right of refusal should Renault decide to sell.

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