Honda Motor Co. Ltd. ( HMC ) shares soared nearly 13.55% in Tokyo trading on Tuesday, marking their biggest one-day gain since 2008, after the Japanese automaker announced a massive share buyback plan and confirmed merger discussions with Nissan Motor Co. Ltd. ( NSANF ) .

While Honda ( HMC ) shares jumped on the Tokyo exchange to 1,452 Japanese yen, Nissan stock declined marginally by 0.22% to 449 Japanese yen in Tuesday trading. U.S.-listed Honda Motor Co. Ltd. ( HMC ) traded higher on Monday, closing at $26.93, up 12.72% for the day. In after-hours trading, the stock rose by an additional 2.94%.

Honda ( HMC ) plans to repurchase up to 1.1 trillion yen ($7 billion) worth of shares, representing about 24% of its outstanding stock, by December 2025. The buyback significantly exceeds its previous November plan to acquire 100 billion yen in shares.

The two Japanese auto giants confirmed they have entered formal negotiations to merge operations, which could create the world’s third-largest automaker by sales volume.

The companies expect to conclude merger discussions by June 2025. Mitsubishi Motors Corp. ( MMTOF ) , Nissan’s existing strategic partner, has until January to decide whether to join the combined entity.

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