Honda's CEO said it was "difficult" to explain why Nissan would make a good business partner. Analysts believe that Honda's ideal partner for a merger would be a more "healthy and financially sound company.

Hon Hai Precision Industry Co., the Taiwan-based manufacturer of iPhones known as Foxconn, is putting its interest in pursuing Nissan Motor Co. on hold while the Japanese automaker is in negotiations for a potential merger with Honda Motor Co.

News of Foxconn evincing interest in Nissan comes as Honda and Nissan have had potential merger discussions. Nikkei had reported that Foxconn's interest in Nissan has hastened both the Japanese auto firms' efforts, out of fear that Nissan could be vulnerable to a takeover by Foxconn.