Nissan Motor Corp. is pushing back against reports suggesting that it will reject Honda’s proposal for a merger that would create a massive global automotive force.

On Wednesday, reports emerged indicating that Nissan plans to pull out of discussions regarding the potential merger with Honda. This news follows an earlier Nikkei report that detailed the two automakers’ negotiations, which were aimed at positioning the companies to better compete with the likes of Tesla and Chinese car manufacturers.

The Stalled Talks

The Wall Street Journal confirmed that the talks had stalled, with sources revealing that Nissan’s board had decided the terms proposed by Honda were "unacceptable." According to the reports, Honda had presented a revised proposal that would have made Nissan a subsidiary of Honda, a shift away from the original plan where the two companies were to operate under a holding company structure.

Nissan quickly responded to the media frenzy, stating in a release that no official announcement had been made regarding the status of the talks. The company confirmed that discussions were ongoing and promised a formal update later this month.

Nissan's Stance on the Merger

“We have seen some media coverage about the merger discussions, but our company has not made an official statement about withdrawing from the talks,” Nissan said in its statement. “Based on the memorandum of understanding signed on December 23, we are still in the process of advancing our discussions. We plan to make an announcement around mid-February regarding our direction moving forward.”

The original plan had called for a more balanced partnership, with both automakers sharing control of the new entity. However, Honda’s latest proposal would have placed Nissan under its control, leading to a significant shift in the proposed deal’s dynamics.

Renault’s Influence on the Deal

Meanwhile, Renault, which holds a 36% stake in Nissan, has reportedly been pushing the Japanese automaker to extract more value from any potential deal with Honda. The involvement of Renault adds another layer of complexity to the ongoing discussions between Nissan and Honda.

Neither Honda nor Renault responded to requests for comment on Wednesday.