Honda proposed changing the structure of the intended merger from a joint holding company, as agreed initially, to a deal with Honda as the parent company and Nissan its subsidiary through a share exchange. Both companies concluded eventually that it was best to “cease discussions,” the statement added.

After Honda walked away from merger talks, Nissan finds itself at a crossroads. Could tech giant Foxconn or private equity firm KKR be the lifelines it desperately needs?

Japan’s Nissan and Honda have ended discussions on a deal that would have created the world’s third-largest carmaker.