Honda’s shares have surged by 17%, the largest gain since August, after announcing a plan to repurchase up to $7 billion worth of shares before its acquisition deal with Nissan Motor Co. is finalized.
The buyback aims to “sweeten” the deal for investors and provides relief that concerns over the Nissan agreement are easing. Honda plans to purchase up to 24% of outstanding shares between January 6 and December 23, 2024. The two carmakers have also agreed on a joint holding company plan, which will list its shares in August 2026.
The news has led to fluctuations in Nissan’s share prices as investors await the outcome of internal restructuring plans. Despite this, Honda’s buyback announcement seems to be having a positive impact on its stock performance.
Source: https://www.bloomberg.com/news/articles/2024-12-24/honda-shares-jump-17-as-buyback-eases-concern-over-nissan-deal