Hon Hai Precision Industry, known as Foxconn, has reportedly put its pursuit of Nissan Motor on hold while the Japanese carmaker explores a potential merger with Honda Motor (HMC), Bloomberg reported Friday, citing sources familiar with the matter.
Foxconn's decision follows a meeting with Renault in France, which owns 36% of Nissan and has an influence over the merger discussions, the sources said.
The cited sources said Foxconn is not giving up completely but will assess the progress of the Honda-Nissan negotiations before determining its next steps.
The report said, however, Foxconn's ability to challenge Honda in a takeover would have been limited due to the strong domestic ties between the Japanese automakers.
Foxconn, Renault, Nissan Motor and Honda Motor did not immediately respond to requests for comment from MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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