Investing.com– Honda (NYSE:) Motor and Nissan (OTC:) Motor are anticipated to start discussions concerning a doable merger, aimed toward pooling assets to strengthen their place within the electrical car market, based on Wednesday.
The 2 Japanese automakers are contemplating the potential for working beneath a joint holding firm, the report mentioned, including {that a} memorandum of understanding, which is able to formally launch these negotiations, is predicted to be signed quickly.
Particulars concerning their respective stakes within the proposed new entity, in addition to different particulars, shall be decided at a later stage, the report mentioned.
This transfer is a strategic response to the fast evolution of the automotive business, significantly within the electrical car section.
By becoming a member of forces, Honda and Nissan purpose to higher compete with Tesla (NASDAQ:) and Chinese language electrical car producers, which at the moment maintain a big market share.
The choice to merge assets comes as automakers all over the world grapple with the transition to electrical and autonomous automobiles, a development that has been accelerated by rising environmental issues and technological developments.
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