Japanese auto giants Honda and Nissan confirmed they've scrapped merger talks announced in December​, ending a tie-up that would have created the world's third-largest automaker.

Nissan and Honda ended merger talks to forge a $60 billion carmaker on Thursday, pitching Nissan deeper into uncertainty and underlining the challenge for legacy auto companies as Chinese rivals upend the industry.

TOKYO—Honda and Nissan on Thursday officially scrapped their planned merger less than two months after announcing it, putting pressure on troubled Nissan to look for other partnerships.The two Japanese automakers had said in December that they planned to combine operations by 2026,