Nissan is still holding “various discussions” with Honda, the carmaker said Wednesday in response to media reports that it is set to scrap merger talks with its larger rival. The two Japanese companies announced in December that they would conduct negotiations over the following six months on a possible merger,

Nissan Motor Co. is pulling out of its deal with Honda Motor Co. to combine both brands and regain global competitiveness, the Nikkei newspaper reported Wednesday.

Nissan plans to reject Honda’s terms for a combination of the two automakers, endangering a plan announced less than two months ago. Shares in Nissan fell nearly 5% in Tokyo, while Honda sto