According to a knowledgeable source, Foxconn has contacted Nissan Autos, hoping to gain control of the company.
The unnamed person stated that Hon Hai has been heavily investing in factories to produce electric vehicles, and is interested in acquiring the entire Nissan company, not just its factories and equipment, although this proposal has not been made public.
It is currently unclear whether Nissan has had substantial discussions with Foxconn or has already rejected its proposals. A Nissan spokesperson declined to comment.
As news of Foxconn's intention to acquire control of Nissan emerged, Nissan and Honda announced that they have entered into talks for a possible merger, which would better position the combined company to face competitive challenges worldwide, including in the China market. It is reported that Foxconn's interest in Nissan has accelerated the merger efforts of the two Japanese companies.
Honda's Executive Vice President Shinji Aoyama stated on Wednesday that the company is considering several options, which may involve capital cooperation or establishing a holding company with Nissan.
For Foxconn, acquiring control of a Japanese company is not unprecedented. In 2016, it acquired two-thirds of the shares of electronics manufacturer Sharp, which brought numerous benefits, including a well-known Consumer Electronics brand, liquid crystal display production capability, and intellectual property. Over time, Foxconn has been slowly reducing its shareholding in Sharp, but it remains the largest Shareholder.