Honda Motor Co.'s shares jumped 6.39% in an intraday surge on Wednesday, outperforming the broader market. This rally came amid reports that the Japanese automaker was in talks to merge with Nissan Motor Co., creating the world's third-largest automaker by sales.

However, the merger discussions have reportedly hit a roadblock, with Nissan considering calling off the talks due to disagreements over control and governance issues. According to sources familiar with the matter, Nissan's board is expected to meet soon to decide on terminating the merger discussions, as Honda had expressed interest in making Nissan a subsidiary, which was seen as a departure from the initial proposal of a "merger of equals."

Despite the potential collapse of the merger talks, Honda's stock soared on the prospect of the company combining forces with Nissan to create a larger, more formidable automotive group. Such a move would bolster Honda's position in the rapidly evolving electric vehicle market and better position the merged entity to compete with industry giants and emerging rivals from China.