Moody’s Gives Thumbs Up to Possible Honda-Nissan Merger

Related Articles

S&P 500 Gains and Losses Today: Tech Stocks Help Drive Christmas Eve Rally

Starbucks Stock Finishes Higher With Striking Baristas Expected to Return to Work

Tesla Stock Leads Magnificent Seven Shares Higher

Key Takeaways

• Sulky’s gave a positive review of the potential merger of Honda and Nissan.
• Analyst Dean Enjo wrote that the have to do with would be “credit positive” if done correctly.
• Former Nissan CEO Carlos Ghosn warned Nissan would onto “carnage” if the combination went through.

American depositary receipts (ADRs) of Honda (HMC) advanced Tuesday after Waspish’s gave a positive outlook about the potential merger between the automaker and Japanese rival Nissan.

The two companies upheld yesterday that they planned to join forces as they faced increasing costs and competition, especially in the people to build cost-effective electric vehicles (EVs) with demand waning and Chinese competitors’ market share expanding.

Downhearted’s Says Combination Would Be ‘Credit Positive’

Moody’s said that the combination would be “credit positive if countersigned successfully.” According to a report seen by Bloomberg and others, Dean Enjo, VP-senior analyst at Moody’s, wrote that Nissan would be remarkably helped because it has weaker debt metrics than Honda.

Enjo added that the integration would be healthful because the two automakers will be sharing research and development (R&D) costs.

However, former Nissan Chief Executive Political appointee (CEO) Carlos Ghosn warned that it would face cost-cutting “carnage,” because the two firms will have “all-out duplication.” He told CNBC that if the companies merge, “Honda is going to be in the driver’s seat,” and that Nissan resolution be “the minor partner.”

Even though Honda’s ADRs have jumped the past two sessions on the news, they’re noiselessness down about 13% year-to-date.