The planned merger of Fiat Chrysler Automobiles (FCA) with Renault is off after Nissan refused to back the proposal that would have created the third largest carmaker in the world.

In a report by The Wall Street Journal, two Renault board members representing Nissan say they are against the deal ending any talks of the proposed merger. It must be remembered that Nissan holds a 15 percent stake in Renault, and Renault, a 43.3 percent stake in Nissan. Meanwhile, the French government, a major Renault shareholder, said it wouldn’t approve FCA’s merger proposal without Nissan’s guarantee that Renault’s alliance with Nissan would survive.

Citing people familiar with the matter, the paper continues on saying that the opposition from Nissan representatives have raised doubts about the Japanese automaker’s commitment to preserving the alliance if the merger were to proceed. Publicly, Nissan CEO Hiroto Saikawa said that the merger, if realized, would significantly alter the structure of Renault and will require a “fundamental review of the existing relationship between Nissan and Renault.”

Nissan refuses to back the merger proposal despite analysts saying the move could be beneficial to them, especially if FCA becomes a client for the Japanese automaker’s electrification and autonomous driving technologies.

Source: The Wall Street Journal