The companies first announced merger talks last December to create the world’s third-largest automaker by vehicle sales.

Japanese auto giants Honda and Nissan confirmed on Thursday they had scrapped merger talks that would have created the world's third-largest automaker by unit sales.

Japanese automakers Honda, Nissan and Mitsubishi said Thursday they are dropping their talks for a business integration. The automakers agreed to end their agreement regarding the consideration of the structure for a collaboration of the trio,