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Nissan shares posted their biggest gain in nearly 40 years after it entered talks to merge with Japanese rival Honda.
A deal that could also include Mitsubishi Motors, in which Nissan is the main shareholder with a 24 percent stake, and would create the world’s third largest automaker with 8 million sales a year, behind Toyota (11, 2 million) and the German giant Volkswagen (9.2 million). metro).
Nissan shares are up 24 percent, but are still down 25 percent this year. Honda fell 3 percent.
The talks come as automakers face fierce competition from fast-growing Chinese rivals that make electric vehicles.
Merger talks: Nissan and Honda are in exploratory talks about a deal that could also include Mitsubishi Motors, in which Nissan is the largest shareholder with a 24% stake.
Russ Bell, chief investment officer at AJ Bell, said the threat from China was one of the “major issues facing the industry”.
But a deal may raise anxiety in the UK, where Nissan has warned the industry is at a “crisis point”.
It employs 7,000 workers here and supports 30,000 in the supply chain.
Nissan and Honda responded almost identically to a request for comment, each saying they are “considering various possibilities for future collaborations” but that “no decisions have been made.”
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