Shares of Nissan Motor Co. On Wednesday, they soared by 24%, which was the largest daily increase in the last 50 years. Investors reacted positively to rumors of a possible merger with Honda Motor Co., which could save Nissan from financial difficulties. Nissan securities became the leader of the Japanese Nikkei 225 index, bringing long-awaited relief to investors who watched the company's worst performance in the last half century. Honda is exploring several options for cooperation, including a merger, capital partnership or the creation of a holding company, said Shinji Aoyama, executive vice president of the company. Mitsubishi Motors Corp., whose shares have risen by 20%, which was the highest growth since 2013, may also participate in the negotiations. At the same time, Honda shares fell 3.4% as investors fear that the company will have to rescue Nissan, which will not bring it short-term benefits. Analysts also note that such a deal looks unprofitable for Honda in the near future. The difference in market reaction was reflected in the credit market: spreads on Nissan dollar bonds narrowed significantly, demonstrating optimism, while Honda credit default swaps rose sharply, reflecting investor concerns.
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