Japanese auto giants Honda and Nissan confirmed they've scrapped merger talks announced in December​, ending a potential combination that would have created the world's third-largest automaker.

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

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.