(Yicai Global) Nov. 28 -- Chinese construction firm Grandland Holdings has withdrawn plans to buy Italian curtain wall builder Permasteelisa after failing to obtain approval from the United States.

The would-be buyer is still in talks with Japanese buildings materials maker Lixil Group, which holds a 100-percent stake in Permasteelisa, but the acquisition will not go ahead, Grandland's listed arm Shenzhen Grandland Group said in a statement on Nov. 26, citing a veto from the US Committee on Foreign Investment as the reason behind the move.

It did not explain why the US rejected the deal.

Grandland Holdings penned a EUR467 million (USD527 million) deal to fully acquire the Italian firm in August last year. It had planned to merge with the firm over the three years following the close of the transaction.

The target is a global leader in making and installing curtain walls -- non-structural outer walls of buildings, often made with glass to allow in light but keep out wind, rain and other adverse weather. The firm has designed architectural envelopes for the Sydney Opera House, Taipei 101, Apple Park, the Shanghai World Financial Center and the Hong Kong Global Trade Center.

"Permasteelisa's advanced philosophy and design practices will significantly support the development of China's architectural decoration industry," Grandland, which operates several curtain wall firms in China, said at the time.

Editor: James Boynton