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.

Japan’s second- and third-largest automakers hope the $50 billion deal would help them catch up with Tesla and China’s BYD in electric vehicles and advanced software.

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.