The big merger between Nissan (NSANY) and Honda (HMC) is no more. In a statement on Thursday, the boards of both companies said they decided to mutually terminate their memorandum of understanding signed last August for a proposed tripartite deal that would have included Mitsubishi as well.

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.

Japanese automakers Nissan and Honda stopped negotiations on a merger on Thursday but committed to continue collaborating.