Honda Motor and Nissan Motor have decided to end discussions on integrating their businesses after failing to reach an agreement on merger terms. Nikkei reported that the decision was made during their respective board meetings on Thursday.

Both Japanese automakers plan to hold separate press conferences later in the day.

In December, Honda and Nissan revealed plans to establish a joint holding company by August 2026, signing a memorandum of understanding to initiate discussions on business integration.

Honda had emphasized that any merger would depend on Nissan's business recovery. However, it found Nissan's turnaround plan unsatisfactory and subsequently proposed making Nissan a subsidiary to expedite restructuring efforts.

This proposal met resistance from Nissan, which had entered negotiations under the assumption that the integration would be an equal partnership, Nikkei reported.

jiangxueqing@chinadaily.com.cn