2025.02.0509:25:00UTC+00Nissan Stock Down, Honda Up On Reports Of Block In Merger Plans

Shares of Nissan Motor Co. saw a decline of approximately 5% on the Tokyo Stock Exchange after reports emerged that the Japanese automaker's board intends to reject the merger terms proposed by Honda Motor Co., Ltd. Conversely, Honda shares rose by about 8% in Tokyo following the news and are showing an increase of roughly 6% in pre-market trading on the NYSE.

Nissan's board was set to convene later on Wednesday, with individuals acquainted with the situation noting that the board has not yet reached a definitive decision regarding the rejection of the deal.

Back on December 23, both companies announced they were engaged in official merger discussions aimed at creating the third-largest automaker in the world by vehicle sales. The proposed merger structure involved Honda and Nissan becoming subsidiaries under a single holding entity. The deal also envisaged the inclusion of Mitsubishi Motors, in which Nissan holds significant shares.

Recently, media outlets reported that Honda presented a revised proposal that suggested making Nissan a subsidiary, deviating from the initial plan where both entities were to become subsidiaries of a holding company. Nissan reportedly deemed this new proposal unacceptable and plans to dismiss it.

On Wednesday, Nissan's shares concluded regular trading in Tokyo at 386.90 yen, a decline of 4.87%. Meanwhile, Honda shares stood at 1,500 yen, reflecting an increase of 8.19%. In pre-market activity on the NYSE, Honda shares were priced at $29.22, marking a rise of 6.10%.