Emaar and Dubai Holding have cancelled plans to merge their real estate businesses in what would have created a company with combined assets of AED149bn ($53bn).

A spokeswoman for Emaar confirms that talks between the two have now ceased and an official announcement will be made to the Dubai Financial Market, where Emaar shares are traded, before the market opens on 10 December.

No reason has been given for the suspension of talks. Emaar chairman Mohammed Alabbar said in late November that talks should be concluded by the end of December.

The deal would have involved the merger of Emaar with Dubai Holding’s property subsidiaries Dubai Properties, Sama Dubai and Tatweer. The proposed merger was announced in late June.

Emaar and Dubai Holding Commercial Operations Group were downgraded to below investment grade by credit ratings agencies Moody’s Investors Service and Standard & Poor’s in early December.