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.

The reality is that Nissan would effectively become a subsidiary of Honda, something the company is finding hard to swallow. Mitsubishi Motors, a much smaller vehicle manufacturer, has already indicated that it will decline an invitation to participate in the merger so as not to lose managerial independence.

Instead of pursuing a domestic merger, Nissan is now shifting its attention to a potential partnership with a US-based technology firm.