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.

Even if the merger is off, Nissan remains keen on working with Honda in areas such as electric vehicles and software defined vehicles.

With the $60 billion merger now seemingly off the table, Nissan is looking for other options to stay competitive, particularly after recent financial setbacks. Citing two unnamed sources, Reuters reports that the automaker is open to working with technology companies, with Foxconn emerging as a serious contender.