In the case of a merger between Nissan and Honda, it is unlikely to form a cooperation that leverages the strengths of both parties as their market shares overlap almost completely.
Mainly, the integration effects are expected to come from efficiency improvements through the abolition of duplicated departments.
In short, large-scale restructuring is necessary.
Especially, if the Ministry of Economy, Trade and Industry is involved in the merger, will it be possible to carry out the necessary restructuring?
It is also expected that there will be opposition from Honda's labor union.
If Honda has strong corporate strength, they can maintain employment for the time being, but they do not have the luxury of offering such favorable conditions.
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