Honda Motor will resume talks with Nissan Motor to form the world's fourth-biggest automaker provided Nissan CEO Makoto Uchida steps down, the Financial Times reported on Tuesday citing a person familiar with discussions.

Japanese carmaker Honda Motor is reportedly demanding Nissan jettison CEO Makoto Uchida as a condition for reopening acquisition talks that could create the world’s third-largest carmaker by vehicle sales.

The proposed merger between Honda and Nissan which hit the dust last week would have created the world’s fourth-biggest automaker. The shotgun marriage

Honda may be willing to restart negotiations that fell apart earlier this month, on the condition that Nissan CEO Makoto Uchida leaves the automaker, according to a Monday report from the Financial Times.

Talks broke down because Honda wanted Nissan to use its hybrid system. Now Honda is willing to resume talks if Nissan's CEO, Makoto Uchida steps down.

Honda (NYSE:HMC) is ready to revive merger talks with Nissan (OTCPK:NSANY) if the latter's CEO Makoto Uchida resigns, the Financial Times reported, citing people with knowledge of the matter. Merger talks between the Japanese automakers fell through after Honda (NYSE:HMC) proposed that Nissan (OTCPK:NSANY) become a fully owned subsidiary,