Shares of Honda surged 15.51% after the company announced merger discussions with Nissan and a share buyback plan, which marked their strongest performance in over 16 years,

In contrast, Nissan’s shares declined by over 1%.

The buyback involves repurchasing 24% of Honda’s issued shares, totaling approximately 1.1 trillion yen (around US$7 billion), by December 23, 2025.

Honda and Nissan confirmed formal merger negotiations, which could position them as the third-largest automaker globally by sales.

The proposed merger aims to share resources, enhance economies of scale, and achieve operational synergies.