A deal for China's largest cement maker to take over a major rival collapsed after failing to gain government approval, the company said Friday, in a blow to Beijing's pledges to tackle oversupply. Anhui Conch Cement offered nearly $600 million for a controlling stake in struggling West China Cement late last year, but China's commerce authorities failed to approve it by the June 30 deadline, scuttling the deal, Anhui Conch said on its website.
Rumours the deal was in danger saw West China Cement shares plunge 33 percent in Hong Kong on Tuesday before they were suspended from trading. The companies said in a joint statement Thursday to the Hong Kong Stock Exchange that they would "continue to explore future opportunities for business collaboration in different structures or manners".