Nissan and Honda consider merger

Honda Motor Co. and Nissan Motor Co. are exploring a merger, according to people familiar with the matter, that would create a singular rival to Toyota Motor Corp. in Japan and better position the combined company to face competitive challenges around the world.

- Bloomberg

Shares in Nissan surged as much as 24%, their biggest intraday jump on record.

Honda is considering several options including a merger, capital tie-up or the establishment of a holding company, executive vice president Shinji Aoyama said on Wednesday following reports overnight of talks between the carmakers. Aoyama declined to elaborate on when a potential decision will be made.

The companies could make an announcement on December 23, TBS reported. Stock in Honda fell as much as 3.4%.