“Shares of Honda Motor Co. rose more than 17%, the most since August, after the automaker said it would buy back up to $7 billion in shares by December next year, ahead of a deal to take over ailing rival Nissan Motor Co.”, — write: epravda.com.ua
Shares of Honda Motor Co. rose more than 17%, the most since August, after the automaker said it would buy back up to $7 billion in shares by December next year, ahead of a deal to take over ailing rival Nissan Motor Co. Bloomberg writes about it. Honda said it will buy back a maximum of 24% of its outstanding shares between January 6 and December 23, 2025. On the same day, the two automakers announced a preliminary agreement to create a joint holding company that plans to go public in August 2026. The share buyback is seen as an attempt to ease concerns among Honda shareholders about the negative impact a merger with Nissan could have on the company. As of 11 a.m. in Tokyo, Honda was the top-performing company on the Nikkei 225 and the top contributor to the Topix index.Advertisement: By buying such a large stake, Honda may be looking to influence the ratio of its potential deal with Nissan, as the automakers have agreed to base that ratio in part on prices of their shares. We will remind: On Monday, December 23, the car companies Nissan and Honda signed a memorandum of understanding for a possible merger of businesses by creating a joint holding company. Advertisement: Shares of the car manufacturer Nissan demonstrated the highest dynamics on the Japanese stock index Nikkei 225 and increased by 24% against the background news about the talks with Honda about the merger.