The Asahi Shimbun reported today that the proposed merger between two major Japanese automotive companies, Nissan and Honda, may be canceled.

According to sources close to the matter, the two companies are planning to hold a meeting to discuss the cancellation of the merger negotiations.

It is understood that Honda wanted to turn Nissan into a subsidiary; however, this plan was met with strong opposition as it did not align with previous arrangements.

When the merger plan was announced at a joint press conference last December, a holding company was set to be formed to oversee both brands, which would become the third-largest automotive company in the world, following Toyota and Volkswagen

Further surprising developments have emerged just days after reports stated that Honda and Nissan aimed to postpone their merger announcement until mid-February.

Nissan is currently grappling with a restructuring effort that includes cutting up to 9,000 jobs globally.

However, the company has not provided detailed explanations of the plan to its potential business partners, and Honda’s upper management has also complained that Nissan is moving too slowly.

In a press conference last December, Nissan President Makoto Uchida emphasized that both companies would be on equal footing.