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Nissan Explores Merger With Honda, Sparking Record Share Jump

  • Shares in Nissan post their biggest intraday gain on record
  • Joining forces seen as way to compete with Tesla, EV rivals
WATCH: James Hong, head of Asian autos at Macquarie Capital, shares his take on the potential merger of Honda and Nissan.Source: Bloomberg
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Honda Motor Co. and Nissan Motor Co. are exploring a merger, according to people familiar with the matter, that would create a singular rival to Toyota Motor Corp. in Japan and better position the combined company to face competitive challenges around the world. Shares in Nissan surged as much as 24%, their biggest intraday jump on record.

Honda is considering several options including a merger, capital tie-up or the establishment of a holding company, Executive Vice President Shinji Aoyama said on Wednesday following reports overnight of talks between the carmakers. Aoyama declined to elaborate on when a potential decision will be made.