Honda Motor (HMC) and Nissan Motor said Thursday they have agreed to end merger talks less than two months into discussions.

The two companies signed on Dec. 23 a memorandum of understanding to explore a merger.

The joint statement described discussions between the two companies' officials over various possible structures of a combined company. "Both companies concluded that, to prioritize speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the MOU," the companies said.

Separately, the two companies and Mitsubishi Motors also agreed to terminate their MOU regarding a three-way collaboration.