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The potential connection would create the third largest carmaker in the world to compete with American and Chinese companies.
The second and third largest car manufacturers of Japan, Honda and Nissan, have announced that their advice voted to end the conversations for merger, even when they promised to continue their cooperation with electric vehicles against the background of the increase in global competition.
Thursday's announcement ends a potential connection that would create the world's third largest carmaker worth about $ 60 billion.
The companies said in a joint statement that “agreed to terminate the MR (Memorandum of Understand), signed on December 23 last year to browse business integration between the two companies.”
Companies' intention to unite their efforts are seen as an offer to catch up with the US Titan Tesla and Chinese companies In the market for electric vehicles.
Nissan has been reported to have abandoned the conversations with a bigger rival Honda after the negotiations were complicated by increasing differences, including Honda's proposal that Nissan became a subsidiary, Reuters sources said before.
In the joint statement, automakers confirmed that Honda “offered to change the structure of the establishment of a joint holding company … to a structure in which Honda will be the Mother and Nissan company, the subsidiary through shares exchange.”
As a result of the conversations, both companies have come to the conclusion that “it would be most appropriate to terminate the discussions and to end MP,” the statement said.
However, they will continue to “cooperate with the strategic partnership aimed at the intelligence era and electric vehicles, striving to create a new value and to maximize the corporate value of both companies,” he added.
Automobile manufacturers and junior partner Mitsubishi Motors have announced they will view the merger late last year. Later, sources told Reuters that Mitsubishi was unlikely to participate.
Honda and Nissan saw their industry and the key market of China, increased by the rapid rise of Chinese electric vehicle manufacturers As BYD, they both face the prospect of tariffs in the United States, another key market.
With the collapse of merger negotiations, Nissan is now open to working with new partners, with Taiwan's Foxconn being regarded as one candidate.
Foxconn President Young Liu said on Wednesday that he would consider taking a share in Nissan, but his main goal was cooperation.
