Taiwan's Foxconn is pausing its interest in Nissan Motor as the Japanese automaker explores a potential merger with Honda Motor, Bloomberg News reported on Friday, citing people familiar with the matter.

Following a report that Honda is looking to merge with Nissan comes word that Foxconn, the Taipei, Taiwan-based electronics manufacturer best known for assembling millions of Apple iPhones per year, is interested in acquiring Renault’s remaining equity in Japan’s number-three automaker.

Nissan and Honda operate in the same markets with similar brands and products, Ghosn said, casting doubt on the merits of the two combining.