Foxconn Halts Interest in Nissan Due to Potential Merger Talks with Honda - Report

Foxconn, the Taiwan-based iPhone manufacturer known as Hon Hai Precision Industry Co., has decided to halt its bid for Nissan Motor Co., according to Bloomberg News. This decision comes during a period when the Japanese automaker is engaged in negotiations for a potential merger with Honda Motor Co. This information was disclosed by a person familiar with the matter.

The halt follows a Foxconn delegation's discussions with Renault SA in France. Renault, which holds a 36% stake in Nissan, will have a significant influence in any potential merger.

Despite the decision to pause, Foxconn, which has long-term goals to enter the electric vehicle industry, has not completely withdrawn its interest. The company is waiting to see if Honda and Nissan make significant progress toward a merger before deciding on its next steps. The individual discussing this particular decision preferred to remain anonymous.

This development is the last link in an unexpected series of events involving two potential buyers for the struggling Japanese automaker. Nissan is currently facing challenges in increasing profitability and gaining market share. Honda and Nissan, which have been considering a merger for years, appear to have accelerated their merger discussions following Foxconn's expression of interest in acquiring the entire company.