Nissan’s credit outlook was recently downgraded to “negative” by Fitch Ratings, which cited declining profitability, in part because of price reductions in the North American market.
However, it pointed out that it has a sound cash reserve of 1.44 trillion yen ($9.4 billion) and a healthy financial structure.
Additionally, Nissan’s stock price has dropped to the point that it is regarded as a bit of a steal. Its shares traded in Tokyo increased 1.6% on Monday.
Following last week’s announcement of the potential merger, they surged by almost 20%. Honda’s stock rose 3.8%. Due to a decline in sales in China.,
Honda’s net profit decreased by about 20% in the first half of the April–March fiscal year compared to the same period last year.
The consolidation trend in the industry is reflected in the merger. During a regular briefing on Monday, Cabinet Secretary Yoshimasa Hayashi stated.
