Nissan shares down 15% as investors react to plan for merger

Shares in the Japanese carmaker Nissan have taken their biggest fall since August's stock market sell-off, as investors turned their attention to the company's planned tie-up with domestic rivals Honda and Mitsubishi.

- Joanna Partridge

Nissan's shares fell by as much as 15% yesterday, before regaining some losses to close down 7.8%, in a sign of investor volatility. The fall came less than two weeks after the company's shares soared by 20% on 17 December, when reports emerged that Nissan was to begin talks on a potential merger with Honda.

Nissan, Honda and Mitsubishi are considering joining forces to better contend with falling sales and competition from Chinese brands.