Nissan and Honda consider merger to take on world's biggest carmaker

Honda Motor Co and Nissan Motor Co are exploring a merger, according to people familiar with the matter, that would create a singular rival to Toyota Motor Corp. in Japan and better position the combined company to face competitive challenges around the world. Shares in Nissan surged as much as 24%, their biggest intraday jump on record. 

Honda is considering several options including a merger, capital tie-up or the establishment of a holding company, Executive Vice President Shinji Aoyama said on Wednesday following reports overnight of talks between the carmakers. Aoyama declined to elaborate on when a potential decision will be made.