Chinese Steelmaker Taigang Stainless Steel Co Ltd (TISCO) announced that it will not go ahead with the planned acquisition of 51pc stake in nickel alloy company Linyi Xinhai New Materials, according to media reports.
TISCO terminated negotiations spanning over two years due to vast variances among the parties in the valuation and asset scope of the transaction.
On November 3, 2019, Chinese company Baowu Steel group signed a tactically outlined agreement to collaborate with Shanxi province-based TISCO and Shandong-based Linyi Xinhai.
However, on June 21, TISCO decided to terminate the plan while maintaining friendly negotiations with the Baowu Steel. TISCO has stated that it will no longer plan asset reorganizations for the next 3 months.