By TOKYO (Reuters) – Former Nissan (OTC:NSANY) chief executive Carlos Ghosn cast doubt on the success of a potential merger between Honda (NYSE:HMC) and Nissan, saying the latter’s plans “do not make sense” at a press conference on Monday.
Honda and Nissan are expected to announce the start of business integration talks, two people familiar with the matter told Reuters, as the carmakers strive to survive a rapidly changing industry landscape.
“From an industrial point of view, there is duplication everywhere” between the two firms, Ghosn said, saying complementarity was necessary in a merger but none existed between Honda and Nissan.
“If this merger takes place … personally I don’t think it’s going to be successful,” he added, speaking online from Lebanon, where he is currently based.
Ghosn fled Japan in December 2019 as he awaited trial on accusations of under-reporting earnings, breach of trust, and misappropriation of company funds.