Nissan, Honda and Mitsubishi Motors agreed on Thursday to terminate a memorandum of understanding related to exploring the possibility of operational integration, as Honda and Nissan have formally canceled merger talks.

Going forward, the three companies will cooperate within the framework of a strategic partnership for intelligent and electrified vehicles.

The framework, based on a memorandum of understanding signed by the three parties on Aug. 1 last year, aims to maximize the companies' corporate value.

Previously, some analysts believed that Nissan's advantage of focusing on pure electric model development earlier could help accelerate Honda's electrification transition.

And the scale and synergies from the integration of the two companies could outpace competitors in the new electric vehicle race.

However, according to media reports, Nissan and Honda have diverged in their thinking on operational integration.

Honda's proposal to acquire Nissan and turn it into a wholly owned subsidiary was strongly opposed by Nissan.

Nissan wants to maintain an equal relationship in the merger, while Honda wants to take control of management dominance in performance improvement and other aspects of the rapid advancement of decision-making.

Fitch Ratings' Satoru Aoyama previously said that if the merger talks do not progress, the next focus will be on the all-electric vehicle alliance between Honda and Nissan.