Logistics group DX Group PLC (LON:DX.) has abandoned its plan to merge with the John Menzies PLC's Distribution division after the two groups failed to agree a price.
A combination had strong strategic logic for all stakeholders, but the DX board has been unable to agree suitable terms, said a statement.
The £40mln price had already been renegotiated once, but since then Petar Cvetkovic, chief executive, and Daljit Basi, finance director, have both left DX.
READ: DX Group senior management departs in big shake-up
More boardroom change were announced today with Ron Series proposed as chairman-designate, and Paul Goodson, Russell Black and Lloyd Dunn to be put forward as non-executives.
Bob Holt, the current chairman, will retire once the new board is in place.
He said it became "clear that we would not be able to agree terms that would be acceptable to our shareholders and since we have a strong alternative business transformation plan in place, we have decided that it is the best interests of our shareholders for us to pursue this course".
"Our major shareholder and our bankers are supportive of the proposed plans for the business on a stand-alone basis and we have been exploring new financing options with our bankers.”
DX shares remain suspended.
Menzies added it was its decision to end the talks after concluding it would not be possible to agree another revised set of terms with DX though there was still value to be created by separating its Aviation and Distribution divisions.
Shares in Menzies rose 1% to 710.3p.
-- adds detail, Menzies share price --