Nissan’s decision to withdraw from merger discussions with Honda marks the latest setback for the struggling automaker as it faces declining sales, financial pressures, and an increasingly competitive electric vehicle (EV) market.

According to the report, Foxconn had expressed interest in acquiring Nissan in December, despite the then-active merger talks with Honda. Nissan had reportedly rejected the bid, but it seems that the company is still considering a collaboration with the iPhone maker.