On Monday, Japanese automakers Nissan and Honda announced they have begun official negotiations to merge, which could catapult them to the world's third-largest carmaker by sales. During the same day, the company announced its share buyback plans by December 23 next year, which amounts to 24% of its issued shares.
Mark Fields, Former Ford CEO, joins 'Closing Bell Overtime' to talk Honda and Nissan entering merger talks.
The auto sector is in focus today, as companies big and small wrestle with Honda Motor (HMC) and Nissan Motor moving forward with merger talks, with plans to reach a conclusion in June of 2025 and potentially form the third largest automaker in the world.
Japanese car giants Honda and Nissan are working out the details of a major merger that could create the world's third-largest automaker, as the companies look to survive in an industry faced with uncertainty.
Honda Motor Co Ltd (NYSE:HMC) stock is up 13.6% to trade at $27.13 at last glance, as merger talks with Nissan officially move forward , with plans to reach a conclusion in June 2025.
Honda was looking at the second-biggest one-day percentage gain since Oct. 28, 2008.
Honda's (HMC) U.S.-listed shares popped Monday morning after the Japanese automaker and Nissan announced the signing of a memorandum of understanding (MOU) outlining their plans to merge in 2026.
Honda, Nissan and Mitsubishi have confirmed talks are taking place to potentially create the world's third-largest carmaker. The trio on Monday firmed up plans to “start consideration towards a business integration through the establishment of a joint holding company”.
Japanese auto makers Honda and Nissan say they plan to complete the merger in August 2026.
Honda and Nissan signed a basic agreement for merger talks on Monday, according to a joint media briefing held in Tokyo. Honda also said it will buy back as much as ¥1.1 trillion yen ($7 billion) of its own shares.
Honda Motor (NYSE:HMC) and Nissan are expected to announce a plan to establish a joint holding company as part of a potential merger, sources told Reuters. The two automakers aim to finalise the agreement by June 2025, with the holding company expected to list shares in August 2026.
Both companies are grappling with intense global competition in the electric vehicle market from the likes of Tesla and China's BYD.