عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia, Egypt Discuss Advancing Industrial and Mining Collaboration

Alkhorayef held on Monday meetings with Egyptians ministers in Cairo. SPA
Alkhorayef held on Monday meetings with Egyptians ministers in Cairo. SPA
TT
TT

Saudi Arabia, Egypt Discuss Advancing Industrial and Mining Collaboration

Alkhorayef held on Monday meetings with Egyptians ministers in Cairo. SPA
Alkhorayef held on Monday meetings with Egyptians ministers in Cairo. SPA

Minister of Industry and Mineral Resources Bandar Alkhorayef has held talks with Egyptian ministers in Cairo, discussing fostering industry and mining cooperation and attracting investments to strategic industrial opportunities in Saudi Arabia.

Alkhorayef held on Monday separate meetings with Egyptian Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir, Minister of Investment and Foreign Trade Hassan El-Khatib, Minister of Petroleum and Mineral Resources Karim Badawi, and Central Bank of Egypt (CBE) Governor Hassan Abdallah.

During his meeting with the Egyptian industry and transport minister, Alkhorayef emphasized the importance of strengthening collaboration between the two nations to activate agreed industrial integration paths. Alkhorayef highlighted the role of the Saudi Vision 2030 in leading economic transformation and stimulating growth across various sectors. He also underscored the launch of various strategies aimed at creating added value in industry, mining, and exports, alongside many initiatives to streamline the industrial investors’ journey.

In his meeting with the Egyptian investment and foreign trade minister, Alkhorayef explored means of enhancing cooperation with Egypt in investments. They also discussed fostering effective partnerships within the private sector of both countries to leverage available investment opportunities.

Alkhorayef, in his meeting with the Egyptian petroleum and mineral resources minister, underscored Saudi Arabia’s commitment to bolstering bilateral collaboration in the mining and mineral industries sector. He emphasized the Kingdom’s keenness on leveraging the economic strengths of both nations. Alkhorayef extended an invitation for the Egyptian minister to participate in the fourth Future Minerals Forum, to be held in Riyadh in January 2025.

Alkhorayef’s conversation with the CBE governor centered on exploring financing mechanisms and guarantees provided by financial institutions in both countries to enhance trade and offer solutions to investors.The meetings were attended by Industry and Mineral Resources Deputy Minister for Industry Affairs Khalil Ibn Salamah, Saudi EXIM Bank Chief Executive Saad Alkhalb, Saudi Exports Development Authority Chief Executive Abdulrahman Althukair, and Saudi Ambassador to Egypt Saleh Al-Husseini.

Most Viewed

 
 
Business

Honda, Nissan Move to Deepen Ties, Sources say, Including Possible Merger

FILE - Nissan Chief Executive Makoto Uchida, left, and Honda President Toshihiro Mibe attend a joint news conference in Tokyo, Friday, March 15, 2024. (Kyodo News via AP, File)
FILE - Nissan Chief Executive Makoto Uchida, left, and Honda President Toshihiro Mibe attend a joint news conference in Tokyo, Friday, March 15, 2024. (Kyodo News via AP, File)
TT
TT

Honda, Nissan Move to Deepen Ties, Sources say, Including Possible Merger

FILE - Nissan Chief Executive Makoto Uchida, left, and Honda President Toshihiro Mibe attend a joint news conference in Tokyo, Friday, March 15, 2024. (Kyodo News via AP, File)
FILE - Nissan Chief Executive Makoto Uchida, left, and Honda President Toshihiro Mibe attend a joint news conference in Tokyo, Friday, March 15, 2024. (Kyodo News via AP, File)

Honda and Nissan are in talks to deepen ties, two people said on Wednesday, including a possible merger, the clearest sign yet of how Japan's once seemingly unbeatable auto industry is being reshaped by challenges from Tesla and Chinese rivals.
A combined Honda and Nissan would create a $54 billion company with annual output of 7.4 million vehicles, making it the world's third-largest auto group by vehicle sales after Toyota and Volkswagen, Reuters reported.
The two firms already forged a strategic partnership in March to cooperate in electric vehicle development, but Nissan's deepening financial and strategic trouble in recent months has added more urgency for closer cooperation with larger rival Honda.
Nissan announced a $2.6 billion cost savings plan last month that includes cutting 9,000 jobs and 20% of its global production capacity, as slumping sales in China and the United States led to an 85% plunge in second-quarter profit.
"This deal appears to be more about bailing out Nissan, but Honda itself is not resting on its laurels," said Sanshiro Fukao, executive fellow at Itochu Research Institute. "Honda's cash flow is set to deteriorate next year and its EVs haven't been going so well."
Shares of Nissan closed nearly 24% higher in Tokyo trade on Wednesday, while shares of Honda, whose market value of $43 billion is more than four times bigger than that of Nissan, declined 3%. Shares of Mitsubishi Motors, in which Nissan is the top shareholder with a 24% stake, gained nearly 20%.
The automakers have been grappling with challenges from EV makers, particularly in China, where BYD and others have surged ahead.
The talks between Honda and Nissan, first reported by the Nikkei newspaper, could allow the companies to cooperate more on technology and help them create a more formidable domestic rival to Toyota.
The discussions are focused on finding ways to bolster collaboration and include the possibility of setting up a holding company, said the people, who declined to be identified because the information has not been made public.
The companies are also discussing the possibility of a full merger, according to one of the people, as well as looking at ways to cooperate with Mitsubishi.
Honda, Nissan and Mitsubishi said no deal had been announced by any of the companies, though Nissan and Mitsubishi noted the three automakers had said previously they were considering opportunities for future collaboration.
French automaker Renault, a major Nissan shareholder, said it had no information and declined to comment.
Renault shares jumped 6.5%.
The three Japanese automakers are expected to hold a joint news conference in Tokyo on Monday, according to a source familiar with the matter.
Taiwan's Foxconn, which manufactures Apple's iPhones and has been seeking to expand its nascent EV contract manufacturing business, approached Nissan about a bid but it was rejected by the Japanese firm, two separate sources familiar with the matter said.
Bloomberg News reported earlier on Wednesday that Foxconn had approached Nissan to take a controlling stake.
Foxconn did not immediately respond to a request for comment, while a Nissan spokesperson declined to comment on Foxconn.
CHANGING LANDSCAPE
Over the past year, an EV price war launched by Tesla and BYD has intensified pressure on any automakers losing money on the next-generation vehicles. That has put pushed companies like Honda and Nissan to seek ways to cut costs and speed vehicle development, and mergers are a major step in that direction.
"In the mid- to long-term, this is good for the Japanese car industry as it creates a second axis against Toyota," said Seiji Sugiura, a senior analyst at Tokai Tokyo Intelligence Laboratory.
"Constructive rivalry with Toyota is a positive for the rather stagnating Japanese car industry when it must compete with Chinese automakers, Tesla and others."
Any merger would face significant US scrutiny and President-elect Donald Trump has vowed to take a hard line on imported vehicles, including threatening 25% tariffs on vehicles shipped from Canada and Mexico. He could seek concessions from Honda and Nissan to approve any deal, auto industry officials said.
Honda and Nissan both produce cars in Mexico for export to the US
Honda and Nissan would also have to work out how to integrate their different corporate cultures if they proceed with a merger, analysts said.
"Honda has a unique, technology-centric culture with strengths in powertrains, so there should be some internal resistance to the merger with Nissan, a competitor with a different culture that is now faltering," said Tang Jin, a senior researcher at Mizuho Bank.