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.

Honda and Nissan are reportedly in discussions about a potential merger between the Japanese automakers, and the rumors do not come as a surprise to industry experts.

Nissan said Wednesday that the two carmakers had been “exploring various possibilities for future collaboration” for months. Honda chief executive Toshihiro Mibe said his company is considering a merger or joint ventures with Nissan that could put them in a better position to take on competitors.