Nissan Motor Co. is pulling out of its deal with Honda Motor Co. to combine both brands and regain global competitiveness, the Nikkei newspaper reported Wednesday.

According to the report, executives at Honda were frustrated by Nissan's slow progress, including in its restructuring plan, which calls for 9,000 job cuts and a 20% reduction in production, and proposed taking more control of Nissan. Such a proposal deviates from the initial one, in which Nissan would retain its decision-making powers.

Honda 's shares soared today after Japanese media reported that the company is eyeing a takeover of its ailing rival Nissan. The acquisition, if it goes through, could derail the ongoing merger talks between the two automotive giants.