Japanese auto giants Honda and Nissan confirmed they've scrapped merger talks announced in December​, ending a tie-up that would have created the world's third-largest automaker.

The deal, which was announced in December, ran into a wall after Honda proposed a structure that would make Nissan its subsidiary instead of an equal partner.

Nissan, Honda and Mitsubishi Motors have terminated their December MoU, but agreed to keep collaborating on technology.