Nissan and Honda are in exploratory talks about a merger of the two carmakers that would create a $52bn Japanese behemoth, said people briefed on the matter.
The two companies are studying a way to combine that would help them better compete at a time when traditional carmakers are grappling with fast-growing Chinese electric-vehicle manufacturers, and slower than expected consumer demand for EVs.
Shares in Nissan surged more than 22 per cent in early trading in Tokyo on Wednesday, on expectations that a deal would put a healthy premium on the company. Honda’s stock dropped as much as 3 per cent.
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