The Wall Street Journal reported that Nissan was likely to walk away from a merger proposed in December that would create the world’s third-largest auto maker. It was a

The pair are discussing various options, including the possibility of withdrawing from deal talks, according to statements.

A proposed $58 billion merger to create the world’s fourth-largest carmaker appears on the verge of collapse after Honda made an unexpected proposal to turn Nissan into a fully owned subsidiary, according to three people familiar with the matter.