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The suspension of talks comes after news first surfaced on Thursday that the two firms were discussing the combination of some businesses such as next-generation power operations and smart grids, with an eye toward a possible merger further down the road.
Three sources told Reuters that talks had stalled due to a difference in stance between Hitachi, which is keen to explore a full merger, and Mitsubishi Heavy, which only sees merit in combining select operations.
N and could provide impetus for cost cuts essential if the two companies are to cope with a strong yen and fierce global competition. But any momentum behind the deal maain to fizzle quickly on Thursday.
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