Potential Honda deal signals "panic mode" for Nissan, says exhiled ex-chairman Ghosn

Investing.com -- Former Nissan (OTC:NSANY ) Motor Co. chairman, Carlos Ghosn, has commented on the potential deal between Nissan and Honda Motor Co (NYSE:HMC )., labeling it a "desperate move". Ghosn made these remarks on Bloomberg Television on Friday, suggesting that Nissan is in "panic mode".

He expressed skepticism about the feasibility of the deal, stating that the synergies between the two car manufacturers are hard to identify. Both companies operate in the same markets and offer similar brands and products, which Ghosn believes does not support the logic of a merger.

Honda confirmed earlier this week that it is exploring several options, which include a merger, capital tie-up, or the establishment of a holding company with Nissan. Ghosn suggested that the push for a deal could be coming from Japan’s Ministry of Economy, Trade, and Industry.

Meanwhile, Hon Hai (TW:2317 ) Precision Industry Co., a Taiwan-based manufacturer of iPhones, known as Foxconn (SS:601138 ), has also expressed interest in Nissan. However, Foxconn has decided to put its pursuit on hold, according to a report by Bloomberg News on Friday.

Ghosn also shared his thoughts on why Foxconn would be interested in acquiring an automotive company. He explained that Foxconn, which is currently trying to penetrate the electric-car market, might find it more practical to buy an existing car company rather than investing in creating its own electric car.

The former chairman is currently in a legal battle with Nissan, which began over six years ago when executives within Nissan arranged for his arrest and removal from the company. Nissan claims that Ghosn under-reported his income and misused company assets for personal benefit. Ghosn denies these allegations and accuses Nissan of causing damage to his finances and reputation.

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Source: Investing.com