Foxconn Technology Group may pursue Nissan Motor Co. after merger talks between the Japanese automaker and Honda Motor Co. hit a roadblock, though significant barriers remain before any potential deal.
The Taiwanese electronics manufacturer would need to wait until Nissan and Honda formally end their exclusive negotiation agreement, which carries a 100 billion yen ($670 million) breakup fee for engaging with other parties, according to Nikkei.
Beyond financial considerations, management alignment poses another challenge. Foxconn Chairman Young Liu has previously expressed reluctance to create friction with Japanese firms, preferring to focus on contract manufacturing rather than brand operations, sources familiar with the matter said.
Two potential scenarios could emerge: Foxconn could either wait for Nissan to pursue independent restructuring before offering strategic support, or launch a more aggressive takeover bid. The company had previously considered an unsolicited tender offer for Nissan shares before the Honda talks began.
Analysts suggest a partnership between Foxconn and Nissan could strengthen Asia’s electric vehicle supply chain, though questions remain about separating brand management from manufacturing operations.
