Honda's shares went up by as much 17% when local markets opened on Tuesday.

Shares of Nissan (NSANY, 7201.T) tumbled on concerns about its deal with Honda (HMC, 7267.T), which isn't expected to close until 2026. One of the concerns is the starting ratio. According to Nikkei analysis,

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.

Toyota Motor plans to increase its return on equity to compete globally, reports said Wednesday. Earlier this week, Honda Motor and Nissan confirmed they are in talks about a possible merger at time of auto industry upheaval.

Both Toyota and Honda posted quarterly profit declines in November, amid challenges in critical global markets, including the U.S. Japan and China. Reported Toyota ROE Target. On