Honda's stock surges to best performance in 16 years following Nissan deal news

Shares of Japanese automaker Honda Motor Co. surged sharply after the announcement of plans to merge with Nissan Motor Co. and a large-scale stock buyback. On December 24, 2024, Honda's stock price jumped 17%, marking its best performance in over 16 years, Kazinform News Agency reports.

Honda and Nissan have confirmed the start of merger talks, which could be finalized by 2026, creating the world's third-largest automaker. Under the proposed plan, the two companies will combine their operations under a joint holding company, with Honda taking the lead role.

At the same time, Honda announced the largest share buyback in its history, valued at up to ¥1.1 trillion (approximately $7 billion), equivalent to 24% of its outstanding shares. The buyback program will run until December 2025, aiming to boost stock value and strengthen investor confidence ahead of the planned merger.

The Honda-Nissan merger is expected to create an automaker capable of competing with global industry leaders such as Toyota and Volkswagen, while also enhancing the combined company's position in the global electric vehicles market.