Honda-Nissan talks on merger ratio may start at 5-to-1: Nikkei analysis

Market caps seen as main factor in shareholder stakes in new holding company

20241226N Honda Nissan

Honda and Nissan would become subsidiaries of a new holding company under the planned integration, with the merger ratio to be decided in June. (Photos by Kazuhiro Noguchi)

KAZUHIRO NOGUCHI, Nikkei staff writer

TOKYO -- As Honda Motor and Nissan Motor begin talks on a merger, a new Nikkei tabulation shows that negotiations on a share transfer ratio are likely to start at around 5-to-1.

Honda said it will buy back its own shares for up to 1.1 trillion yen (about $7 billion), equivalent to 24% of its issued shares, excluding treasury stocks.

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