The world’s largest subcontractor of electronic components makes products for a large number of companies, including Apple.
Taiwanese electronics giant Foxconn is negotiating the purchase of French automaker Renault’s stake in its Japanese counterpart Nissan, the Taiwan Central News Agency (CNA) said on Thursday. According to this agency, which cites anonymous industrial sources, the head of strategy in the field of electric vehicles at Foxconn went to France to negotiate with Renault the purchase of its Nissan shares. On Wednesday, the Japanese automobile group Honda confirmed that it was exploring the possibility of a merger with Nissan to better face the American Tesla and their Chinese rivals in the field of electric vehicles.
Foxconn, also known by its official name Hon Hai Precision Industry, is the world’s largest subcontractor of electronic components, and manufactures products for a large number of companies, including Apple. The company is seeking to diversify into electric vehicles, mainly in Japan, as well as semiconductors and servers. Group Chairman Young Liu said in November that the company was in talks with “two Japanese car manufacturers” hoping to sign contracts in the coming months, but without providing details.
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“Nissan did not accept”
According to CNA, Foxconn “directly expressed” to Nissan its desire to enter its capital, but “Nissan did not accept”. As a result, Foxconn’s head of electric vehicle strategy Jun “Seki and his team are currently negotiating with Renault in France, hoping that Renault will want to sell its stake in Nissan to Hon Hai”said the agency. Contacted, Foxconn did not immediately respond. Bloomberg indicated on Wednesday that Foxconn’s desire to take a controlling stake in Nissan had accelerated negotiations between the latter and Honda. The two Japanese manufacturers are already associated within a “strategic partnership”. As part of the rebalancing of their alliance, announced in early 2023 after years of conflict, Renault and Nissan continue to hold a 15% cross-shareholding. Renault, which previously owned 43.4% of Nissan, transferred its shares beyond 15% to a French trust.
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