Reuters reported that Hitachi Limited and Mitsubishi Heavy Industries are ready to walk away from merger talks, dashing hopes for a groundbreaking marriage of two of Japan's oldest conglomerates.

The suspension of talks comes after news first surfaced on August 4th 2011 that the two companies, which can trace their histories back more than 100 years, were discussing a limited combination of some businesses such as next generation power operations and smart grids, with an eye toward a complete merger later on.

Three sources told Reuters that talks had stalled because Hitachi is keen to pursue a full merger while Mitsubishi Heavy prefers combining selected operations.

Any momentum behind the deal appeared to fizzle quickly on August 4th 2011. Soon after media reported the news and Hitachi said an announcement would come later in the day, both Hitachi and Mitsubishi Heavy officials denied the talks and no announcement was made.

(Sourced from www.reuters.com)