(Yicai Global) Sept. 16 -- Neway Valve has aborted its planned EUR11.3 million (USD13.4 million) take-over of Germany's Econosto International Holding due to changes in market conditions caused by the Covid-19 pandemic, China's largest industrial valve maker said today.
Neway Valve will pay the German flow control products maker EUR500,000 (USD594,000) in compensation, as per the acquisition agreement, the Suzhou-based firm said.
The termination of the deal will not affect the company's overall business development and operations, it added. Neway Valve will continue to focus on developing its main business, enriching product categories and increasing its market share.
Neway Valve announced last December that it was to acquire Econosto as part of its strategy to increase its global presence. The firm already has subsidiaries in the US, the Netherlands, Italy, Singapore and Dubai.
Founded in 1982, the Sachsen-based firm provides valve assembly, testing and maintenance services for the oil, natural gas, power, shipbuilding and chemical industries, Neway Valve said at the time.
Neway Valve [SHA:603699] closed down 2.48 percent today at CNY14.92 (USD2.20), giving it a market capitalization of CNY11 billion (USD1.6 billion).
Editor: Kim Taylor