(Bloomberg) — Spectris Plc, a U.K. maker of precision and test equipment, said it ended negotiations to buy Oxford Instruments Plc, a producer of microscopes and lab supplies, citing the economic uncertainty caused by the war in Ukraine.
Oxford Instruments shares fell as much as 21%. Spectris said Monday while it still sees a compelling rationale for the acquisition, market conditions mean the deal wouldn’t be in shareholders’ best interest.
“The advent of war in Ukraine, with its deplorable events, has created significant uncertainty in global economic conditions” and there’s no clear end in sight, Spectris said.
This is one of the first M&A deals to get disrupted by uncertainty caused by the war in Ukraine. The company said last week it was in talks to buy Oxford Instruments for 3,100 pence a share in cash and stock.
Under U.K. takeover rules, Spectris is now prohibited from making a new bid for the next six months, excluding special exemptions like the target invites a fresh offer or a third party makes an approach.
Spectris shares fell as much as 3.5%. The company has no businesses in Ukraine.
(Updates with shares in second paragraph)
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