Nissan Motor Co. NSANY shares surged 22.54% in Tokyo on Wednesday after the reports of merger talks with Honda Motor Co. HMC. Honda’s stock is trading down 2%.
According to the report, the two automakers are exploring a merger under a holding company structure, with plans to include Mitsubishi Motors Corp. MMTOF, where Nissan holds a 24% stake. A memorandum of understanding is expected soon. Mitsubishi Motor shares were seen trading over 13% higher in Tokyo at the time of writing.
If finalized, the combined Nissan-Honda-Mitsubishi group could achieve annual sales exceeding 8 million vehicles, making it one of the world’s largest automakers. However, it would still trail Japan’s Toyota Motor Corp. TM, with 11.2 million sales in 2023, and Germany’s Volkswagen AG at 9.2 million.
Year-to-date, Nissan shares have fallen 28.3% trading at 412 Japanese Yen ($2.68), while Honda is trading at 1,270 Japanese Yen ($8.27), down 15.7%. Meanwhile, Mitsubishi Motor stock is up 1.49% this year trading at 463 Japanese Yen ($3.01).
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