Shares of Nissan (NSANY, 7201.T) tumbled on concerns about its deal with Honda (HMC, 7267.T), which isn't expected to close until 2026. One of the concerns is the starting ratio. According to Nikkei analysis,

Key Takeaways U.S.-listed shares of Honda jumped Monday morning after the Japanese automaker and Nissan announced plans to merge.The sides signed a memorandum of understanding Monday, with plans to finalize details in June 2025 and merge in August 2026.

The proposed deal aims to unify operations under a joint holding company, led by Honda, while maintaining the distinct identities of each brand, according to Honda's president, Toshihiro Mibe. If finalized, the merger would position the combined entity to better compete with market leaders Toyota and Volkswagen.

Honda stock jumped nearly 24% in Tokyo, while shares of Nissan fell 3%, after the longtime Japanese rivals said they were exploring a merger or other collaboration. Shares of France’s Renault, which owns a stake in Nissan,

Toyota Motor plans to increase its return on equity to compete globally, reports said Wednesday. Earlier this week, Honda Motor and Nissan confirmed they are in talks about a possible merger at time of auto industry upheaval.

Both Toyota and Honda posted quarterly profit declines in November, amid challenges in critical global markets, including the U.S. Japan and China. Reported Toyota ROE Target. On