Investing.com -- Foxconn (SS:601138), the Taiwan-based iPhone manufacturer known as Hon Hai (TW:2317) Precision Industry Co., has decided to pause its pursuit of Nissan (OTC:NSANY) Motor Co, according to Bloomberg News.
The decision comes as the Japanese automaker is currently in negotiations for a potential merger with Honda Motor Co (NYSE:HMC)., according to an individual familiar with the situation.
The pause follows a meeting between a Foxconn delegation and Renault SA (OTC:RNLSY) in France. Renault (EPA:RENA), which owns a 36% stake in Nissan, will have a significant influence on any potential merger.
Despite the pause, Foxconn, which has long-term ambitions to enter the electric vehicle industry, is not completely withdrawing its interest.
The company is waiting to see if Honda and Nissan make substantial progress towards a merger before deciding on its next steps. The individual, who wished to remain anonymous, discussed these private decisions.
This development is the latest in an unexpected series of events involving two potential buyers for the struggling Japanese automaker. Nissan is currently facing challenges in improving its profitability and increasing its market share.
Honda and Nissan, who have been considering a merger for several years, seem to have sped up their merger work after Foxconn expressed interest in purchasing the entire company.
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