Nissan and Honda are calling off their $50 billion merger

Japanese automakers Nissan and Honda have called off a $50 billion merger that would have formed one of the world's largest car companies.

Both firms said in a statement on Thursday that they called off the deal "to prioritize speed of decision-making and execution of management measures" as an "increasingly volatile" car market heads into an electric-vehicle era.

The automakers said they would continue to work in "the framework of a strategic partnership" moving forward.

Nissan and Honda first announced they were beginning merger talks in late December. Had the merger happened, it would have created the world's third-largest automaker by sales.

This is a developing story. Please check back for updates.