Honda shares surge amid reports of proposed Nissan acquisition
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Honda’s stock soared on Wednesday following reports from Japanese media suggesting that the automaker had proposed making its struggling competitor, Nissan, a subsidiary.
The move could potentially signal the end of ongoing merger discussions between the two companies.
In December, Honda and Nissan agreed to explore a partnership aimed at forming the world’s third-largest automaker, a strategic move to compete with Tesla and Chinese electric vehicle (EV) manufacturers. However, new reports indicate that Honda is now pushing to acquire Nissan shares and establish it as a subsidiary, rather than merging under a newly formed holding company as previously discussed.
This shift in approach has reportedly met with strong resistance from Nissan, which is concerned about maintaining its independence.
Following the news, Honda’s shares jumped over 4% in early trading, while Nissan initially surged by more than 7% before settling at a 3.3% gain.
Despite the speculation, a Honda spokesperson declined to comment, stating that no official announcement had been made. Meanwhile, Nissan confirmed that discussions were still ongoing, with a final decision expected by mid-February. Reports from Japanese newspapers suggest that both automakers will hold separate board meetings to reassess their positions, with some sources hinting that a merger may no longer be viable.
The global automotive market is facing increasing pressure, particularly from Chinese EV companies like BYD, which are leading innovation in electric vehicle production. Foreign automakers, including Nissan and Honda, have struggled to keep pace amid declining consumer spending and fierce competition.
Both companies had already agreed last year to collaborate on EV software and component development, with Mitsubishi Motors later joining the initiative. However, Mitsubishi has yet to decide whether to participate in the larger Honda-Nissan merger talks, stating that a final decision will come by mid-February or later.