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Honda Stock Surges as Automaker Plans To Merge With Nissan in 2026
49 minutes ago
Honda’s (HMC) U.S.-listed shares popped Monday morning after the Japanese automaker and Nissan announced the signing of a memorandum of understanding (MOU) outlining their plans to merge in 2026.
The automakers plan to finalize the terms over the next several months and announce a definitive agreement in June 2025. A combined entity is expected to be listed on the Tokyo Stock Exchange in August 2026, the companies said.
Honda also announced a plan to buy back up to 1.1 trillion Japanese yen ($7 billion) worth of the automaker’s own stock over the next calendar year, replacing a 100 billion yen ($636.3 million) plan announced last month.
Japanese regulators have not explicitly spoken about the Honda-Nissan deal, but Yoji Muto, head of the Ministry of Economy, Trade and Industry, said last Friday that the government "should take a favorable view when companies cooperate to strengthen their competitiveness," The Wall Street Journal reported.
Honda's U.S.-listed shares soared 13% in early trading Monday after entering the day down about 23% this year.
-Aaron McDade
Stock Futures Mixed To Start Holiday-Shortened Week
1 hr 44 min ago
Futures contracts connected to the Dow Jones Industrial Average traded 0.5% lower in premarket trading on Monday.
S&P 500 futures were off 0.2%.
Nasdaq 100 futures were barely hanging onto gains shortly before markets opened.
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Honda. "Nissan and Honda sign MOU to consider business integration."
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Honda. "Notice Concerning Status and Suspension of Acquisition of the Company’s Own Shares and Determination of Matters Related to the Acquisition of Own Shares."
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The Wall Street Journal. "Honda, Nissan Plan to Create World’s No. 3 Automaker in 2026 Merger."
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