Nissan could soon walk away from a deal that would have created the world’s third-largest automaker.

The reality is that Nissan would effectively become a subsidiary of Honda, something the company is finding hard to swallow. Mitsubishi Motors, a much smaller vehicle manufacturer, has already indicated that it will decline an invitation to participate in the merger so as not to lose managerial independence.

The struggling Japanese carmaker is withdrawing from talks, the Nikkei business daily and other local media reported.