Nissan Shares Surge on Merger Talks with Honda

Nissan's share price surged over 20% following reports of merger talks with Honda, with Nissan shares opening at 417.6 yen and closing up 20.97%. The two companies are considering forming a holding company, with plans for a memorandum of understanding to be signed soon. Analysts suggest that a merger could significantly benefit both automakers, potentially resulting in combined annual vehicle sales exceeding 8 million, placing them among the largest global car manufacturers. This merger would mark the largest in the automotive sector since the formation of Stellantis in 2021. Additionally, the merging entity may also include Mitsubishi Motors, where Nissan holds a 24% stake. Market reactions have been mixed, with Honda shares experiencing a slight decline amidst the excitement around the merger discussions.