Honda and Nissan Initiate Merger Talks

Honda's shares surged nearly 17% following the announcement of merger talks with Nissan, alongside a substantial $7 billion share buyback program. The discussions are part of a strategy to create the world's third-largest automaker, potentially valued at over $50 billion, as both companies face challenges in the competitive electric vehicle market. While Honda's stock rose significantly, Nissan's shares fell by about 7%, reflecting its ongoing struggles, including a planned reduction of 9,000 jobs. The merger aims to unify operations under a holding company led by Honda, with discussions expected to conclude by June 2025. Mitsubishi Motors may also join the merger discussions, further consolidating the Japanese auto industry. Analysts believe the deal could enhance both companies' capabilities in EV production and advanced technologies, positioning them to better compete with global leaders like Toyota and Volkswagen.