According to Reuters, the main reason for the cancellation was Nissan's "high self-regard and failure to properly assess its situation." Additionally, Honda unexpectedly changed the terms of the merger and proposed making Nissan a subsidiary.
Honda and Nissan began exploring ways to collaborate last year and officially started merger talks in December. Their primary goal was to better adapt to the significant changes in the automotive industry.
If the merger had gone through, they would have created the world's third-largest car manufacturer. They were also considering including Mitsubishi in the merger, as the company is currently in a strategic alliance with Nissan.
