Nikkei: Honda-Nissan Merger Talks Anticipated to Start Next Week

According to Japan's Nikkei news service, Honda Motor Co. and Nissan Motor Co. will begin negotiations on a prospective merger as early as December 23, putting the two Japanese automakers one step closer together.

The Nikkei reported on Wednesday that the initiation of official conversations as early as next week would increase momentum toward a potential consolidation. No sources were cited. Bloomberg verified on Tuesday that the firms' senior leadership is considering a transaction, which may involve Mitsubishi Motors Corporation.

Honda and Nissan's desire to improve ties comes after Hon Hai Precision Industry Co., the Taiwan-based iPhone manufacturer known as Foxconn, approached Nissan.

Honda and Nissan's decision to strengthen relations comes after Hon Hai Precision Industry Co., the Taiwan-based iPhone manufacturer known as Foxconn, approached Nissan about purchasing a share in the company, Bloomberg reported earlier Wednesday. 

Honda had vowed to either end an existing technological cooperation with Nissan if the Yokohama-based carmaker pursued a partnership with Foxconn, or to act as a white knight in the event of a hostile takeover attempt by Foxconn. 

A merger of the Japanese companies would provide a buffer against the Toyota Motor Corp. group at home while also allowing Honda and Nissan to pool resources to compete with Tesla Inc. and Chinese carmakers in global markets.