The Japanese Automobile Corporation has announced the largest buybackback in its practice, which it intends to implement by December 2025. The amount planned to be spent is 1.1 trillion yen (approximately $7 billion), which corresponds to 24% of all securities issued by it. Analysts see the buyback as a way to influence Honda's investor concerns about a future merger with Nissan, which has been in decline for the past few years.
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Honda also confirmed the achievement of a preliminary agreement on the formation of a joint venture with Nissan, which will be presented on the stock market in August 2026.
Honda's securities reached a historic high on December 24 on the Tokyo Stock Exchange, increasing by 17.1%. At the end of trading, the increase slowed to 12.22%, the shares were valued at 1,432.5 yen (approximately $9.1).
During the buyback, the company purchases shares from the owners and essentially removes a certain number of its own securities from circulation on the stock exchange. Buybacks provide an opportunity to strengthen the positions of leading investors and strengthen their status.
