French automaker Renault , Nissan Motor's largest shareholder, is open in principle to the Japanese automaker pursuing merger talks with peer Honda Motor , two people familiar with the matter said.

Following a report that Honda is looking to merge with Nissan comes word that Foxconn, the Taipei, Taiwan-based electronics manufacturer best known for assembling millions of Apple iPhones per year, is interested in acquiring Renault’s remaining equity in Japan’s number-three automaker.