Nissan Motor Co. is seeking a new partner as it prepares to end negotiations to form a joint holding company with Honda Motor Co., people familiar with the matter said.

The pair are discussing various options, including the possibility of withdrawing from deal talks, according to statements.

The news that Honda Motor Company, Japan’s second-largest automaker, and Nissan Motor Company, its third-largest, are looking to merge by 2026 is an indication of an industry roiled by government demands for electrification and the ascent of Chinese automakers.