The French automaker owns a 35.7% stake in Nissan, which is equivalent to about ¥557 billion ($3.6 billion). Honda is concerned that if Renault's stake is bought out by a third party during takeover negotiations, it could lead to undesirable foreign influence on Nissan.
Honda and Nissan said they plan to announce the scope of their deal by the end of January 2025 and intend to list a separate holding company that would combine both businesses by August 2026.
However, it remains questionable whether Nissan will have the funds to buy out Renault's stake. Nissan's market value has fallen to about ¥1.56 trillion, while its cash and cash equivalents as of December 31, 2024 were about ¥1.52 trillion.
In November, Nissan announced that it would lay off 9,000 workers and cut a fifth of its production capacity after net profit fell 94% in the first half of the fiscal year.
Nissan now expects its operating income to fall to ¥150 billion by the end of the fiscal year, down 70% from its previous forecast.