Honda and Nissan have discontinued talks related to a possible merger, several outlets report. The update comes after the Associated Press reported in December 2024 that plans to move forward on a merger could be finalized this summer in a combined entity and would yield the world’s third-largest automaker by sales.

Japan’s Nissan and Honda have ended discussions on a deal that would have created the world’s third-largest carmaker.

Honda proposed changing the structure of the intended merger from a joint holding company, as agreed initially, to a deal with Honda as the parent company and Nissan its subsidiary through a share exchange. Both companies concluded eventually that it was best to “cease discussions,” the statement added.