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,

Japanese automakers Nissan and Honda have announced plans for a merger that would catapult them to a top position in an industry that's in flux as it transitions away from its reliance on fossil fuels.

Japan’s second- and third-largest automakers hope the $50 billion deal would help them catch up with Tesla and China’s BYD in electric vehicles and advanced software.