Nissan shares declined sharply on Feb. 5 after reports indicated the company is withdrawing from merger discussions with Honda.

The Tokyo Stock Exchange temporarily suspended trading of Nissan shares for verification of these reports, which were first reported by the Nikkei business daily and other outlets.

The reports highlight disagreements over the merger structure as a significant issue.

The potential merger was part of prior collaborations between Honda and Nissan focused on electric vehicle software and components.

Honda proposed making Nissan a subsidiary, replacing the initial idea of forming a new holding company.

This led to strong opposition within Nissan and the subsequent end of discussions.

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