BIZ

Honda and Nissan hold merger talks

Published

7 months ago

December 18, 2024

editor

Honda and Nissan are understood to have held exploratory talks about a potential merger to help them compete against electric vehicle (EV) makers, particularly in China.

In March, the two Japanese car makers agreed to explore a strategic partnership for EVs.

The firms responded to the BBC with identical statements, which said: “As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths.”

It comes as many car brands grapple with growing competition as the industry shifts from petrol and diesel vehicles to electric, with production in China booming.

Honda and Nissan have not denied the story, which was first reported by Japanese business newspaper the Nikkei, but said it was “not something that has been announced by either company”.

The discussions are understood to be in the early stages and there is no guarantee that a deal will be agreed.

“If there are any updates, we will inform our stakeholders at the appropriate time,” they added.

The two companies are expected to officially confirm that they have held the talks as early as next week, according to Japanese TV channel TBS.

A potential merger between Japan’s number two and number three car manufacturers could be complicated for several reasons.

Any deal is likely to come under intense political scrutiny in Japan as it may lead to major job cuts. Nissan is also likely to be faced with unwinding its alliance with French vehicle manufacturer Renault.

Honda and Nissan agreed in March to cooperate in their EV businesses, and in August deepened their ties, agreeing to work together on batteries and other technology.

In August, the two companies also announced an agreement with Mitsubishi Motors to discuss intelligence and electrification.

The Nikkei also reported that Nissan and Honda may eventually bring Mitsubishi into any potential partnership. Nissan is Mitsubishi’s biggest shareholder.

Nissan shares traded more than 20% higher in Tokyo following the reports. Honda shares fell about 2%, while Mitsubishi’s jumped 13%.

“The thought that some of these smaller players can survive and thrive is getting more challenging, especially when you add on the complexity of all the additional Chinese manufacturers who have come in and are competing quite strongly,” said Edmunds analyst Jessica Caldwell.

“It’s just sort of necessary to survive, not only to survive, but also just to afford the future.”

Honda and Nissan have been losing market share in China, which accounted for almost 70% of global EV sales in November.

The two brands had combined global sales of 7.4 million vehicles in 2023, but are struggling to compete with cheaper EV makers such as BYD, which has seen its quarterly revenues soar, beating Tesla’s for the first time in October.

Jesper Koll, from Japanese online trading platform operator Monex Group, questioned whether a merger could make the companies more competitive.

“Is this really just rearranging the deck chairs on the Titanic in the sense that neither Honda nor Nissan really have any products or any technologies that global consumers want?”

“From that perspective, it’s a nice rescue but it’s not creating a new national champion.”

(BBC News)

BIZ

UK’s relaxed trade rules to boost SL exports

Published

3 hours ago

July 11, 2025

editor

The Government of the United Kingdom (UK) has unveiled a package of reforms to simplify imports from developing countries like Sri Lanka after upgrades to the Developing Countries Trading Scheme (DCTS).

The changes, announced as part of the UK’s wider Trade for Development offer, aim to support economic growth in partner countries, including Sri Lanka, while helping UK businesses and consumers access high-quality, affordable goods.

New measures include simplifying rules of origin, enabling more goods from countries such as Sri Lanka, Nigeria, and the Philippines can enter the UK tariff-free, even when using components from across Asia and Africa.

These changes are expected to be in place by early 2026.

This move strengthens Sri Lanka’s position in its second-largest apparel market, supporting exports, jobs, and economic growth.

The British High Commissioner to Sri Lanka, Andrew Patrick, said: “This is a win for the Sri Lankan garment sector, and for UK consumers. With the UK being the second largest export market and garments making up over 60% of that trade, we know manufacturers here will welcome this announcement.

“We want Sri Lanka to improve the utilisation of the UK’s Developing Countries Trading Scheme for a wider range of goods, not just garments. With the Sri Lankan government’s ambition to grow exports, and with the simplification of rules of origin for other sectors too, we strongly encourage more exporters to explore how they can benefit from the preferences offered by the DCTS. The UK remains committed to working towards creating shared prosperity for both our countries.”

BIZ

Milk tea price upped by Rs. 10

Published

4 hours ago

July 11, 2025

editor

The All Island Canteen and Restaurant Owners’ Association has announced a Rs. 10 increase in the price of a cup of milk tea.

Association President Harshana Rukshan stated that the decision was made in response to the recent rise in the price of imported milk powder.

BIZ

China to drift away from SL with Mazagon Dock’s purchase of CDPLC?

Published

23 hours ago

July 10, 2025

editor

International relations researcher – Dr. Hasith Kandaudahewa says there is a visible trend of China gradually distancing itself from Sri Lanka since 2023, a process that could accelerate with India’s Mazagon Dock Shipbuilders Ltd. acquiring a majority stake in Colombo Dockyard PLC (CDPLC).

Speaking to the BBC Sinhala Service, Dr. Kandaudahewa has noted that CDPLC’s reputation in global shipbuilding makes the acquisition strategically significant for India, especially when viewed alongside India’s newly opened Vizhinjam International Seaport in Kerala.

This shows that India is steadily strengthening its port infrastructure across the Indo-Pacific and increasing its strategic influence in the Indian Ocean, he has said.

Dr. Kandaudahewa has further pointed out that with China already holding Hambantota Port on a 99-year lease, India’s move to secure the majority stake in CDPLC signals a clear challenge to the Chinese presence in Sri Lanka.

“While China is holding the Hambantota Port on a 99-year lease, India is also trying to show its dominance in Sri Lanka. India is trying to pose a challenge to China by securing a majority stake in the CDPLC. Why, because these two countries are staking their claim to two of the most strategic locations in the same country. Similarly, we are seeing China gradually distancing from Sri Lanka from 2023. The CDPLC seems to be accelerating it even further.”

“In the long term, India is investing in renewable energy programs in Sri Lanka. Even though India may not gain much profit from this, it is trying to further retain Sri Lanka as their closest neighbor.”

Mazagon Dock deal confirmed

The Colombo Stock Exchange has already confirmed that Mazagon Dock Shipbuilders Ltd, a public sector undertaking (PSU) of the Government of India, will acquire a 51% stake in CDPLC currently held by Japan’s Onomichi Dockyard Co. Ltd for USD 52.96 million.

The deal is to be completed in the next 06 months.

Mazagon Dock Shipbuilders Limited, Mumbai, an ISO 9001: 2015 Company is one of the leading shipbuilding yard in India.

Since it was taken over by the Indian government in 1960, Mazagon Dock MDL has built a total 805 vessels including 30 warships, from advanced destroyers to missile boats and 8 submarines.