(Reuters) – A merger between Honda and Nissan wouldn’t include fast beneficial properties, because the automakers would first have to align their methods whereas overlapping regional markets would restrict the gross sales advantages, S&P analysts stated on Wednesday.
Whereas the potential deal would lead to a $54 billion automotive firm, the world’s third largest, any advantages for its credit score outlook would include a delay, they wrote in a analysis notice.
“We … imagine will probably be troublesome for them to supply vital results rapidly by way of increasing the scope of their collaboration to incorporate batteries, software program, and autonomous driving,” S&P analysts stated, however added the eventual influence on their creditworthiness could be vital.
A merger would possible have a destructive influence Honda’s standalone credit score outlook, whereas it ought to positively have an effect on that of Nissan, they added.
Additionally they famous that whereas Honda and Nissan have totally different growth methods, they function in comparable regional markets, most notably in North America, China and Japan.
“They subsequently do not complement one another a lot when it comes to regional gross sales,” the analysts stated.
(Reporting by Boleslaw Lasocki in Gdansk; modifying by Milla Nissi)
