Nissan reportedly cancels merger talks with Honda

Nissan stock fell more than 4% before trading was suspended on the Tokyo exchange after the report published by the Nikkei newspaper. The deal apparently hit the buffers after media reports said Honda, as the larger company, suggested Nissan become a full subsidiary.

A merger of the two would create the world's third-largest automaker. Nissan in November posted a 94% drop in first-half net sales, forcing it to cut thousands of jobs, reduce production capacity and lower its annual profit forecast by 70%.

Reporting by Frank Prenesti for Sharecast.com