Two of Japan’s largest automakers have been in talks to combine their operations to form one of the world’s biggest car groups.

Nissan and Honda, both major automakers based in Japan, responded Wednesday to reports that a potential merger of the two companies could beat risk of being abandoned.

Retail investor chatter climbed on Stocktwits early Wednesday as reports surfaced that Nissan’s board plans to reject Honda’s proposed merger terms. The Wall Street Journal, citing sources familiar with the discussions,