Nissan says is in ‘various discussions’ with Honda after reports the two will end merger talks

The two Japanese companies announced in December that they would conduct negotiations over the following six months on a possible merger, a deal that would have created the world’s third-largest automaker and given them more resources to compete with a growing threat from Chinese carmakers.

Japan’s Kyodo News agency and Nikkei newspaper have reported that Nissan is set to ditch those talks. In a statement on its website, Nissan noted media coverage “stating that our company has withdrawn the basic agreement for the merger with Honda” but said that “this matter has not been announced by our company.”