World Street| Honda-Nissan merger eyed, EU approves Nvidia's latest acquisition, and more

World Street offers a sneak peek into the world of business and economy.

Reports suggest that the presidents of Honda, Nissan, and Mitsubishi have notified Japan’s industry ministry about initiating merger discussions, with investors eyeing an official announcement. Meanwhile, Nvidia's $700 million acquisition of Run:ai has received the green light from the European Commission. Additionally, News Corp has reached an agreement to sell its Australian cable TV business, Foxtel, to the British-owned sports network DAZN for $2 billion. All this and more on the December 23 edition of World Street.

Walk the talk

Japanese automakers--Honda and Nissan are likely to announce the commencement of business integration talks today, according to a report by Reuters. The discussions aim to address the evolving challenges in the automotive industry. Both companies have scheduled board meetings on the same day, followed by a joint press conference, which Nissan's alliance partner Mitsubishi Motors is also expected to attend.

If realized, a merger among these three Japanese automakers would create the world’s third-largest auto group by vehicle sales, trailing only Toyota and Volkswagen. Honda and Nissan have reportedly been exploring deeper collaboration avenues, such as forming a joint holding company, to counter rising competition from Tesla and Chinese automakers, as reported by Reuters last week.

Nothing fishy

The European Commission gave its unconditional approval to chipmaker Nvidia's $700 million acquisition of Run:ai. This comes after the EU's investigation into the deal examined potential concerns over Nvidia's influence in the GPU market, where its chips are critical for dividing and processing computing tasks. However, regulators concluded that the acquisition poses no threats to competition.

Falling dominance

News Corp has finalised a deal to sell its Australian cable TV unit, Foxtel, to British-owned sports network DAZN for $2 billion, including debt. The move reduces the Murdoch-controlled media empire’s involvement in the media sector as it is disrupted by the rise of streaming platforms.

As part of the agreement, News Corp will secure a board seat and retain a 6 percent stake in DAZN, the London-based global streaming platform backed by Ukrainian-born billionaire Len Blavatnik, which operates across North America, Europe, and Asia.

Rebellion spreads

Starbucks workers have extended their strike to four additional US cities, including New York, bringing the total to 10 cities, the union Workers United announced over the weekend. The five-day strike, which began on Friday, initially shuttered stores in Los Angeles, Chicago, and Seattle, and now includes locations in New Jersey, New York, Philadelphia, and St. Louis. The union did not disclose the specific New Jersey city affected.

Starbucks stated that the strike has caused minimal disruption to its operations, as only a small number of US stores have been impacted. However, the walkout, taking place during the holiday season, could influence the company’s Christmas sales. Other affected cities include Columbus, Ohio, Denver, and Pittsburgh.

Mishap averted

The US House of Representatives approved a new funding bill on Friday evening, narrowly avoiding a government shutdown just hours before the deadline. However, the bill skipped President-elect Donald Trump’s request for a debt limit increase.

Following the House of Representatives approval, the legislation was sent to the Senate, where it is anticipated to pass as well. Tensions flared when President-elect Donald Trump and billionaire Elon Musk publicly criticised the initial bipartisan stopgap bill at the eleventh hour, sparking chaos. In response to President-elect Donald Trump's criticism, House Republicans hurriedly proposed a “Trump-backed” package that included a two-year suspension of the debt ceiling to facilitate the incoming president's agenda. However, the proposal faced rejection from within Trump’s own party and failed to secure enough support in the House, leaving the effort unsuccessful.