Nissan's future reportedly became the sticking point in negotiations, with Honda pushing to make its smaller competitor a direct subsidiary.

According to the report, Foxconn had expressed interest in acquiring Nissan in December, despite the then-active merger talks with Honda. Nissan had reportedly rejected the bid, but it seems that the company is still considering a collaboration with the iPhone maker.

Nissan Motor Co. is seeking a new partner as it prepares to end negotiations to form a joint holding company with Honda Motor Co., people familiar with the matter said.