Merger talks between Honda and Nissan have collapsed after the firms failed to agree on a multi-billion dollar tie-up deal. The Japanese car makers aimed to combine their businesses to fight back against competition from rival firms,

The Japanese companies’ decision to call off negotiations highlights the challenges legacy automakers face in partnering to tackle new technologies.

The boards of Nissan and Honda voted on Thursday to officially end talks to merge the Japanese automakers, two people familiar with the matter said. A tie-up would have created the world's fourth-biggest auto group by vehicle sales after Toyota,