Mining services group Bradken has announced it will not continue merger discussions with Chilean industrial group Sigdo Koppers.
The parties had agreed to work together to review the strategic and financial merits of a potential merger during a 60 day exclusivity period which expired on the 29th of August.
However during this period, Bradken revealed Sigdo Koppers, along with CHAMP Private Equity had not initiated discussions on a possible merger structure or values, and the consortium advised that while it remains committed to the project, it is not in a position to provide a proposal to the company.
Bradken said the stalled merger talks will allow it to focus all of its resources on completing a restructuring program and growing market share.
“This has been a source of distraction for management and the board during a volatile period in the external operating environment,” Bradken said in a statement.
Shares in Bradken have dropped from $6.44 in October 2013 to just $1.165 yesterday.
In early August the company reported a full year loss of $241.3 million, caused by a major restructure of the company as well as asset write-downs and the broader downturn in the resources sector.
Bradken said its restructuring program is largely complete, with the company well-placed to benefit from the measures it has put in place.