Honda Motor (HMC) is in talks for a potential merger with Japanese carmaker Nissan Motor, media outlets reported Wednesday, citing unnamed people familiar with the matter.

Foxconn, the Taiwan-based producer of Apple's (AAPL) iPhones, was rejected when it approached Nissan to bid on a stake, a Reuters source said. Discussions between Honda and Nissan appear to have accelerated after Foxconn showed interest, according to a Bloomberg source.

Honda and Foxconn did not immediately respond to MT Newswires' requests for comment. Nissan declined to comment.

Shares of Honda were down 3.1% in recent Wednesday premarket activity.

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