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Honda's ( HMC ) U.S.-listed shares are rising in premarket trading after the Japanese automaker and ailing domestic rival Nissan said they have called off merger plans announced in December.

The companies, along with Nissan-controlled Mitsubishi Motors, said they ended plans for a "tripartite collaboration, in light of the termination of the MOU signed on December 23 last year regarding the consideration of a business integration between Nissan and Honda."

The automakers didn't give a reason for the scrapped deal, but the Financial Times had reported the deal was in jeopardy after Honda unexpectedly proposed a new structure that would have made Nissan a fully owned subsidiary. The two initially had agreed on a 50-50 partnership.

In their joint statement Thursday, the three said they will collaborate "within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles." Last March, Honda and Nissan established a partnership related to electric vehicles. Mitsubishi joined the collaboration in August.

Nissan and Honda didn't immediately return Investopedia requests for comment.

Honda's shares are 2% higher in premarket trading after entering Thursday down nearly 20% over the past 12 months.

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