Foxconn approaches Nissan to take stake as Honda looks at merger: Report

Foxconn has approached Nissan to acquire a majority stake, Bloomberg reported citing a person in the know. It is unclear whether Nissan has engaged in dialogue with Foxconn, or spurned the offer, the newswire noted. 

A Nissan representative refrained from offering comments, and a Foxconn spokesperson did not offer a statement in a timely manner. 

News of Foxconn evincing interest in Nissan comes as Honda and Nissan have had potential merger discussions. Nikkei had reported that Foxconn's interest in Nissan has hastened both the Japanese auto firms' efforts, out of fear that Nissan could be vulnerable to a takeover by Foxconn. 

Honda is mulling several options that could include a capital tie up or the formation of a holding company, Executive Vice  President Shinji Aoyama noted on Wednesday. 

Reports of a viable deal of a turbulent month for Nissan, that has seen a sharp drop in profitability, plummeting share price, management overhaul and a new restructuring plan. Nissan stock rose 24%, the most on record, on the back  of possible Honda merger news, the newswire noted.

Japanese business publication Diamond Online reported Foxconn’s proposal earlier Wednesday, Bloomberg noted.