Property developer China Vanke Co terminated a restructuring deal with Shenzhen Metro Group that was valued at $6.9 billion, citing disagreement among its major investors, the firm announced on Sunday.
Vanke struck a deal with Shenzhen Metro Group to buy the latter's stake in Vanke, amid a high-profile and complex corporate power struggle, but after several meetings with major investors, "there is still no consensus reached on the deal," Vanke said in a statement to the Shenzhen Stock Exchange.
Major stakeholders such as Baoneng Group and China Resources, whose combined stake in Vanke exceeds 40 percent, voiced opposition to the deal.
Yan Yuejin, research director at the E-house China R&D Institute, told the Global Times on Sunday that the ending of the deal suggests Vanke might have moved past the corporate struggle, and it could ease pressure for both companies.
