(Yicai Global) March 5 -- Another Chinese company has had to drop the planned acquisition of an American firm as the US government intensifies scrutiny of Chinese investments.

Beijing Dabeinong Technology Group Co. has ditched its plan to acquire a 100-percent stake in Waldo Farms Inc. -- a major supplier of breeding pigs in the US -- and to provide funding for the latter for further expansion and operation, since it failed to pass regulatory review within the prescribed time, the Chinese conglomerate engaged in agriculture and animal husbandry and based in China's capital Beijing said in a recent announcement.

Dabeinong penned a deal with Waldo Farms' shareholders last March, per which it was to spend USD16.5 million via a wholly-owned unit to take over the established breeding pig supplier based in DeWitt, in the central US state of Nebraska and would supply USD10 million to the latter for further expansion and operation.

Waldo Farms is a major supplier of breeding pigs for big commercial farmers in the US. It has sophisticated sales and services channels in North and South America, Africa and Australia, Dabeinong said in announcing its acquisition plan last year. Many Chinese companies have had to drop their US investment plans of late as the US government has set more restrictions on Chinese investors. A recent example is Jinzi Ham Co. which canceled plans to become the largest shareholder in a struggling New York-listed pharmaceutical firm, citing its failure to gain regulatory approval in time.