The proposed deal aims to unify operations under a joint holding company, led by Honda, while maintaining the distinct identities of each brand, according to Honda's president, Toshihiro Mibe. If finalized, the merger would position the combined entity to better compete with market leaders Toyota and Volkswagen.

Stocks wavered in morning trading on Wall Street Monday at the start of a holiday-shortened week. The S&P 500 fell 0.1%. A handful of technology companies helped cushion the widespread losses. The Dow Jones Industrial Average slipped 222 points,

Nissan and Honda, two big car companies from Japan, have announced an agreement to look into merging their businesses by creating a joint holding company.