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.

The two companies said that Honda sought to make Nissan a subsidiary. That shift angered Nissan’s board, a person familiar with the situation said.