Honda shares surge amid proposed Nissan acquisition

Honda's stock rose significantly following reports suggesting a potential acquisition of Nissan, turning the automaker into a subsidiary rather than pursuing previously discussed merger plans. The two companies were initially exploring a partnership to form the world's third-largest automaker to better compete against Tesla and Chinese EV firms. However, Honda's proposed shift to acquire shares has met resistance from Nissan, which is concerned about maintaining independence. In response to this news, Honda's shares jumped more than 4%, and Nissan's shares initially surged over 7% before settling with a 3.3% gain. As speculation mounts, both firms are planning board meetings to assess their positions, with Nissan confirming that discussions are ongoing, and decisions expected by mid-February. The automotive industry faces challenges, particularly from Chinese EV companies, affecting global automakers like Honda and Nissan. Despite their collaboration in EV software and components, Mitsubishi Motors remains undecided about joining the larger merger talks.