Honda explores Nissan merger with Foxconn also in search of stake

Nissan Motor Co. has become the latest acquisition target in Japan as it explores a merger with Honda Motor Co. and is facing an overture from Hon Hai Precision Industry Co., the Taiwan-based maker of iPhones known as Foxconn.

Shares in Nissan rose 24% on Wednesday, the most on record to reach the daily limit, after the two Japanese carmakers acknowledged that talks are underway to better position themselves for competitive challenges at a time of upheaval in the global auto industry.