The pair had been negotiating the terms of a tie-up under which Honda would absorb Nissan, bringing the two brands under a single holding company in 2026.

Nissan shares plunged on Wednesday as reports said the struggling Japanese carmaker was walking away from merger talks with rival Honda. But the smaller automaker's chief said this week it would make a final decision on whether to join the Honda-Nissan merger talks in mid-February or later.

Two of Japan’s largest automakers have been in talks to combine their operations to form one of the world’s biggest car groups.