Japan's Honda, Nissan rise on reported merger talks amid EV competition
Refiles to fix Nissan RIC in 1st bullet and ticker in last bullet
** U.S.-listed shares of Japan's Honda Motor HMC.N up 1.6% at $25.42 and pink-sheet-listed shares of Nissan Motor NSANY.PK up 7.4% at $4.92 on Tues on reported deal talks
** Auto giants to enter negotiations for a merger and join resources to better compete against bigger global electric vehicle makers, the Nikkei newspaper reported
** The move comes as tough competition from Chinese EV makers add pressure on legacy brands struggling to make enough profit from their electrified ventures, per the report
** Both cos also look to eventually bring in Mitsubishi Motors 7211.T, in which Nissan is the top shareholder with a 24% stake, to create one of the world's largest auto groups, the report added
** Despite gains on Tues, HMC shares down ~18% YTD, while NSANY shares off nearly 40% in 2024
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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