Abu Dhabi’s Aabar Investments and Dubai’s Arabtec Holdings have called off the acquisition that would have seen Aabar take a 70 per cent stake in the Dubai-based construction company.

“The parties have agreed that they will no longer pursue the original transaction and will terminate the acquisition documents, effective April 14,” Arabtec said In a statement to the Dubai stock exchange.

On 7 January, the two companies had agreed for Aabar to acquire a 70 per cent stake in Arabtec for AED6.4bn ($1.7bn), with the transaction dependent on the completion of legal diligence and the consent of Arabtec shareholders (MEED 10:1:10).

Arabtec had earlier said that the transaction will consolidate Arabtec’s market position in the construction industry, while supporting Aabar’s diversified investment portfolio.

Arabtec is one of the region’s largest contracting companies with projects in the UAE, Qatar, and Saudi Arabia.