Nissan's future reportedly became the sticking point in negotiations, with Honda pushing to make its smaller competitor a direct subsidiary.

A combination of Honda and Nissan, which would have created the world’s third-largest auto maker, looks to be off the table. Nissan’s board determined that Honda’s terms for a combination of the two auto makers were unacceptable,

Nissan and Honda, both major automakers based in Japan, responded Wednesday to reports that a potential merger of the two companies could beat risk of being abandoned.