Honda Motor’s (HMC) U.S.-listed shares rose in intraday buying and selling Wednesday, following reviews that the Japanese automaker’s plans to merge with ailing home rival Nissan are in jeopardy.

In line with the Monetary Occasions, which cited three folks conversant in the matter, Honda unexpectedly got here in with a brand new construction that will have made Nissan a completely owned subsidiary, a departure from the unique “merger of equals” concept the 2 had initially deliberate. 

A Nissan spokesperson informed Investopedia that the FT article «will not be primarily based on info introduced by Nissan. We purpose to finalize our path by mid-February and can announce it at the moment.»

Honda couldn’t be reached for remark Wednesday morning.

The 2 Japanese automakers introduced plans to mix in December in a tie-up that will have created the world’s third-largest automaker, if Mitsubishi Motors is included, based on The Wall Avenue Journal. Nissan is the most important shareholder in Mitsubishi, the report stated.

A deal would have helped cut prices and assist the automaker compete globally at a time when Chinese language rivals are increasing their market share for electrical automobiles.

Nissan, Honda, and Mitsubishi have a history of collaborating. Honda and Nissan first stated early final 12 months that they might work collectively in components of the EV enterprise, and famous in August that Mitsubishi was becoming a member of the trouble.

Honda shares are down virtually 18% up to now 12 months via Tuesday.