Honda Stock Surges as Automaker Plans to Merge With Nissan in 2026 | Global News Avenue

Honda Motor (Hamaka) U.S.-listed stocks rose sharply on Monday morning after the Japanese automaker and Nissan announced they had signed a deal. Memorandum of Understanding (MOU) Outlining their plans to merge in 2026.

The automakers plan to finalize terms in the coming months and announce a final agreement in June 2025. The combined entity is expected to be Tokyo Stock Exchange The companies said it will be implemented by August 2026.

May include Mitsubishi; Honda launches new buyback program

It has not yet been decided whether Mitsubishi, in which Nissan has a stake, will become Included in the scope of consolidation. The three companies signed a separate memorandum of understanding on Monday, saying Mitsubishi will decide by the end of January 2025 whether to join.

Honda also announced a plan repurchase Up to 1.1 trillion yen The automaker will hold 7 billion yen ($7 billion) worth of its own stock next calendar year, replacing a 100 billion yen ($636.3 million) plan announced last month.

Although the two sides said the merger would allow them to optimize supply chains and manufacturing processes to cut costs, Honda CEO Toshihiro Mibe “did not talk about how the two companies would combine their operations to cope with things like closing or streamlining factories” during a joint press conference. Urgent Issues” meeting, according to Bloomberg.

Japanese regulators have not yet explicitly talked about the Honda-Nissan deal, but Economy, Trade and Industry Minister Yoji Muto said on Friday that the government “should take a positive attitude when companies cooperate to enhance competitiveness.” wall street journal the report said.

Honda’s U.S.-listed shares have fallen about 23% this year, but soared 15% in premarket trading on Monday.