Nissan Stock Jumps as Investors Eye Possibility of Honda Deal | Global News Avenue

Honda and Nissan acknowledged the possibility of a merger, boosting the Japanese carmaker’s active trading session in Tokyo.

Nissan said in a statement on Wednesday Investment Encyclopedia A merger with Honda and other collaborations are possible, confirming previous reports to the same effectwall street journal and other publications suggesting a potential major shakeup in Japan and the global auto industry.

Nissan (National Trinity) Japanese stocks rose nearly 24% on Wednesday, while Honda (Hamas) shares fell about 3%. The Tokyo Stock Exchange initially planned to halt trading in Nissan shares until the report was confirmed, but reversed course at the open, Nikkei Index reported.

Another manufacturer is also reportedly eyeing Nissan. Taiwan’s Foxconn, famous for its iPhone production, has asked Nissan about acquiring a stake. Bloomberg and other media reports.

The two Japanese automakers believe joining forces can help them gain a foothold in the fiercely competitive field of electric vehicle manufacturing. Nikkei Index reported. The outlet noted that if the deal goes forward, both manufacturers plan to invest equity in a holding company to form the combined entity. The merger may also appeal to Mitsubishi Motors, which is partially backed by Nissan Motor Co., Nikkei reported.

These three companies respectively own Cooperation history. Honda and Nissan announced this spring that they would collaborate on parts of their electric vehicle business, noting in August that Mitsubishi would also join the effort.