Renault: shares benefit from Nissan/Honda merger rumors
(CercleFinance.com) - Renault, which holds a 35.
7% stake in Nissan, posted the biggest rise in the CAC 40 index on the Paris Bourse on Wednesday, reacting to press reports of a potential merger between the Japanese carmaker and its compatriot Honda.
According to several reports, Nissan and Honda have entered into negotiations with a view to a possible merger, which led to a sharp rise in Nissan shares, which closed up by more than 23% in Tokyo.
According to some sources, the talks could even include Mitsubishi Motors, of which Nissan is currently the largest shareholder with a 24% stake.
This would create one of the world's largest automotive groups, with combined sales of more than eight million units for the three Japanese automakers (3.7 million for Honda, 3.3 million for Nissan and one million for Mitsubishi), slightly above the 7.5 million units posted by Hyundai-Kia, Oddo BHF analysts say.
For the professionals, such an operation would also be good news for Renault, which owns 35.7% of Nissan (17.05% direct Nissan shares and 18.66% shares held in trust).
Renault has said in the past that it intends to reduce its stake in Nissan, teams at UBS point out.
If Nissan were to validate the project, we don't think it would be a problem for Renault to sell a portion of its stake to a strategic partner and/or Honda', stresses the Swiss bank.
Oddo also envisages synergies at operational level.
To a lesser extent and from an industrial point of view, Honda could also become a new, albeit small, customer for its Ampere division, following the example of Nissan and Mitsubishi) in Europe, it says.
Oddo points out that Honda's sales are expected to be less than 40.000 units this year on the Old Continent, compared with 100,000 for Nissan.
Renault shares were up more than 6% at around 10:20 a.m. on Wednesday, after having gained over 7% in early trading.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
7% stake in Nissan, posted the biggest rise in the CAC 40 index on the Paris Bourse on Wednesday, reacting to press reports of a potential merger between the Japanese carmaker and its compatriot Honda.
According to several reports, Nissan and Honda have entered into negotiations with a view to a possible merger, which led to a sharp rise in Nissan shares, which closed up by more than 23% in Tokyo.
According to some sources, the talks could even include Mitsubishi Motors, of which Nissan is currently the largest shareholder with a 24% stake.
This would create one of the world's largest automotive groups, with combined sales of more than eight million units for the three Japanese automakers (3.7 million for Honda, 3.3 million for Nissan and one million for Mitsubishi), slightly above the 7.5 million units posted by Hyundai-Kia, Oddo BHF analysts say.
For the professionals, such an operation would also be good news for Renault, which owns 35.7% of Nissan (17.05% direct Nissan shares and 18.66% shares held in trust).
Renault has said in the past that it intends to reduce its stake in Nissan, teams at UBS point out.
If Nissan were to validate the project, we don't think it would be a problem for Renault to sell a portion of its stake to a strategic partner and/or Honda', stresses the Swiss bank.
Oddo also envisages synergies at operational level.
To a lesser extent and from an industrial point of view, Honda could also become a new, albeit small, customer for its Ampere division, following the example of Nissan and Mitsubishi) in Europe, it says.
Oddo points out that Honda's sales are expected to be less than 40.000 units this year on the Old Continent, compared with 100,000 for Nissan.
Renault shares were up more than 6% at around 10:20 a.m. on Wednesday, after having gained over 7% in early trading.
Copyright (c) 2024 CercleFinance.com. All rights reserved.