TOKYO - Nissan Motor Co has formally informed Honda Motor Co of its decision to terminate merger negotiations, a move which will likely bring an end to the restructuring attempt that aimed to create the world's third-largest automotive group, local media reported Thursday,

Nissan CEO Makoto Uchida directly conveyed the decision to Honda CEO Toshihiro Mibe during a meeting in Tokyo on Thursday, Nikkei reported.

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The move follows Nissan's board meeting on Wednesday, where the company solidified its plan to withdraw from the Memorandum of Understanding (MOU) signed in December 2024.

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The merger discussions initially focused on forming a holding company that would oversee both brands, but negotiations stalled over the shareholding structure, with tensions escalating when Honda proposed making Nissan its subsidiary, an idea Nissan strongly opposed.

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The companies are expected to decide by mid-February on the merging details. However, with growing differences in their integration strategies, the likelihood of reaching a final agreement remains uncertain.

According to local media, Honda has been pushing Nissan to accelerate its restructuring efforts. In November, Nissan announced plans to cut 9,000 jobs worldwide and reduce its global production capacity by 20 percent after reporting a more than 90 percent drop in net profit for the April-September period.