Honda and Nissan are considering calling off their merger talks, Japan's Asahi Shimbun reported on Wednesday citing several sources.

Honda 's shares soared today after Japanese media reported that the company is eyeing a takeover of its ailing rival Nissan. The acquisition, if it goes through, could derail the ongoing merger talks between the two automotive giants.

The Honda-Nissan merger could be on the rocks, with automotive insiders reporting Nissan could reject Honda’s offer of becoming a subsidiary. Business publication Bloomberg reports a person familiar with the matter has said Nissan may reject the acquisition offer despite “some senior officials” supporting the plan.