Honda Pushes Nissan To Buy Renault’s Stake But Can It Afford $3.6 Billion?

As if the potential merger between Honda and Nissan wasn’t complicated enough, it’s worth remembering that Nissan is already part of a long-standing alliance with Renault and Mitsubishi. According to a new report, Honda is worried about Renault’s potential influence on its planned merger and has asked the ailing Nissan if it could buy out the French firm’s stake.

Renault currently owns a 35.7% stake in Nissan worth approximately $3.6 billion. The brand has been notably absent from talks between Honda and Nissan, and has only said it will “consider all options based on the best interest of the Group and its stakeholders,” leaving Honda in a sticky situation.

Read: What Does Renault Think Of Nissan’s Planned Merger With Honda?

According to a report cited by Bloomberg, Honda has asked Nissan if it would be able to acquire Renault’s stake. Unnamed sources suggest Honda is worried Nissan could be subject to undesirable foreign influence if a third party snaps up the French brand’s shares during negotiations.

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Nissan buying up Renault’s stake could be difficult. It had cash and cash equivalents of around 1.52 trillion yen ($9.8 billion) at the end of 2024, and more than a third of that would be needed to buy Renault’s share. Given how much Nissan is already struggling financially, it’s unclear if it can justify such an expense unless it stages a remarkable recovery.

In late December, former Nissan and Renault boss Carlos Ghosn said Renault may be open to selling its share directly to Honda. The local government is eager for the merger Nissan, Honda, and Mitsubishi brands so that they remain under Japanese ownership. The threat of Taiwanese company Foxconn expressing interest in buying Nissan may have encouraged Japan’s Ministry of Economy, Trade, and Industry (METI) to push Honda into the merger.

Even so, Nissan still has plenty of hurdles to clear before the deal can be made official. According to a recent report, it may need to triple its profit by the 2026 financial year to prove to Honda that it could be a solid partner. If it can’t do this, the merger may not happen.