Frenkel Topping, the financial services firm, has decided not to make a firm offer for Kettering-based NAHL Group plc, with the parties agreeing to terminate discussions.
Talks over a possible combination of the two companies was announced by Frenkel Topping last September.
In a statement Frenkel Topping said: “Since [23 September 2020], Frenkel Topping and NAHL have engaged in constructive and open discussions and a period of mutual due diligence.
“It has however become apparent that a combination presents certain commercial and integration challenges.
“Therefore, the Board of Frenkel Topping believes that other growth and acquisition opportunities are more compelling at this time and in the best interest of its shareholders.
“The Board of Frenkel Topping recognises that this is a disappointing outcome but, as a significant shareholder in NAHL, also wishes NAHL the best for the future.”
NAHL said: “Following extensive discussions, the Board has been unable to conclude a transaction that is in the best interests of NAHL shareholders.”