Nissan stock surges 30% amid possible merger with Honda as Japan automakers look to take on Chinese EVs

The move would bring the two struggling car companies together in a bid to reclaim market share from rising domestic brands in China, the world’s largest car market.

Nissan Motor (NSANY) shares surged 30% Wednesday following a Nikkei newspaper report that the struggling Japanese automaker is in talks with Honda Motor (HMC) over a possible merger in a move that could upend the electric vehicles (EV) market. Meanwhile, Honda shares were down about 2.5% in afternoon trading.