Renault Open to Nissan's Merger Talks with Honda

(Reuters) – French automaker Renault (EPA:RENA), Nissan's (OTC:NSANY) largest shareholder, is open in principle to the Japanese automaker pursuing merger talks with Honda (NYSE:HMC) Motor, according to two confidential sources.

The sources indicated that Renault would examine all implications of a potential tie-up to protect its own interests. Bloomberg was the first to report Renault's position.

Japanese automotive giants Honda and Nissan are in discussions to form a holding company, which could help them share resources to tackle increasing competition.

A spokesperson for Renault Group commented, "On principle, Renault Group supports Nissan's efforts to restore business situation," but did not provide details on the current merger discussions.

The talks, initially reported by the Nikkei newspaper, would enable Honda and Nissan to collaborate more closely on technology and enhance their competitiveness in the electric vehicle sector.