Mergers and Acquisitions: Japanese Automakers to Announce Talks, Nvidia-Capital's Acquisition Gets EU Green Light
In a move that sends shockwaves through the automotive industry, Honda, Nissan, and Mitsubishi presidents have notified Japan's industry ministry about initiating merger discussions, according to Reuters. The developments come as investors expect an official announcement about potential talks paving the way for the creation of the world's third-largest auto group by vehicle sales.
According to sources, both Honda and Nissan have scheduled board meetings on the same day, followed by a joint press conference, while Mitsubishi Motors is also expected to attend. The goal of these discussions appears to be addressing the evolving challenges in the automotive industry and counter-rising competition from Tesla and Chinese automakers.
Meanwhile, Nvidia's $700 million acquisition of Run:ai has received approval from the European Commission. A close examination by EU regulators had raised concerns over Nvidia's influence in the GPU market but ultimately deemed the acquisition to pose no threats to competition.
On the media front, News Corp has reached an agreement to sell its Australian cable TV business Foxtel to the British-owned sports network DAZN for $2 billion, including debt. This move marks a significant reduction for the Murdoch-controlled media empire's involvement in the media sector as it faces disruption from streaming platforms. As part of the deal, News Corp will secure a board seat and retain a 6 percent stake in DAZN.
In other business news, Starbucks workers have extended their strike to four additional US cities, including New York and New Jersey, bringing the total number of affected locations to ten. The union has announced a five-day strike primarily impacting Los Angeles, Chicago, Seattle, and previously-listed cities as part of the initial announcement.
Lastly, tensions in Washington dissipated slightly after the US House of Representatives approved a new funding bill narrowly, avoiding a government shutdown at the 11th hour without including President-elect Donald Trump's requested debt limit increase.