Nissan's future reportedly became the sticking point in negotiations, with Honda pushing to make its smaller competitor a direct subsidiary.

Nissan and Honda, both major automakers based in Japan, responded Wednesday to reports that a potential merger of the two companies could beat risk of being abandoned.

According to the report, Foxconn had expressed interest in acquiring Nissan in December, despite the then-active merger talks with Honda. Nissan had reportedly rejected the bid, but it seems that the company is still considering a collaboration with the iPhone maker.