Hon Hai Explores Renault Stake Purchase to Facilitate Renault-Nissan Alliance
Hon Hai Precision Industry Co., the global leader in contract electronics manufacturing, is considering acquiring Renault SA's stake in Nissan Motor Co. to facilitate a strategic partnership.
Hon Hai approached Nissan and Honda Motor Co. with its proposal, according to Chairman Young Liu, despite ongoing discussions between the two Japanese automakers reportedly reaching an impasse. Hon Hai's intervention offers Nissan a potential lifeline following reports that it communicated its decision to terminate merger negotiations with Honda this month.
Nissan's Tokyo-listed shares initially recovered some losses following Liu's comments, but later resumed their decline.