What's Going On With Honda Motor Shares Wednesday?

Honda Motor Company, Ltd. HMC shares are moving lower on Wednesday. The company clarified in a filing with the Securities and Exchange Commission (SEC) that media reports regarding discussions of business integrations with other vehicle manufacturers are not based on an official company announcement.

The Details: Several media reports have suggested that Honda has been in discussions about a potential merger with Nissan Motor Co., Ltd. and Mitsubishi Motors Corporation over the past week. Honda’s recent filing confirms that these reports are not based on a company announcement.

In its filing, Honda did reference its announcements from March and August of this year, which discussed the company, Nissan and Mitsubishi combining their strengths and exploring various possibilities for future collaboration.

In the August filing, the company announced that it signed a Memorandum of Understanding (MOU) with Nissan and Mitsubishi. The MOU builds on the March agreement between Nissan and Honda, with Mitsubishi joining the collaboration.

The partnership will focus on advancing intelligence and electrification of automobiles, with Mitsubishi adding new strengths and synergies in areas such as environmental technologies, electrification and software development. In addition, the collaboration aims to accelerate initiatives for carbon neutrality and a zero-traffic-accident society.

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HMC Price Action: At the time of writing, Honda Motor stock is trading 2.73% lower at $24.59, according to data from Benzinga Pro.

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