Nissan denies backing out of merger deal with Honda

Japanese automaker Nissan Motor Co. on Wednesday denied media reports that it had withdrawn a key agreement for its merger with Honda Motor Co. It confirmed that it was still in discussions with Honda regarding the deal.

The company said in a statement: “Based on the memorandum of understanding signed on December 23 last year, we and Honda are still in the process of multiple discussions, including those reported in the media. We intend to determine the final direction and announce it by mid-February,” according to the German news agency.

In December, Nissan and Honda signed a memorandum of understanding to begin discussions on business integration through the establishment of a joint holding company.