Spectris PLC (LSE:SXS) said it has terminated discussions about a possible offer for Oxford Instruments PLC (AIM:OXIG) due to the economic uncertainty resulting from Russia’s invasion of Ukraine.
The proposed 3,100p per share offer was announced on 28 February.
In a statement, Spectris said it still believes there is strong rationale for combining the two businesses but that the time is not right.
"Oxford Instruments is a quality company and the strategic and financial rationale for a combination of our businesses is highly compelling,” said Spectris chief exectutive Andrew Heath.
“However, with the invasion of Ukraine, the world has changed since our proposed offer was made regarding a combination of our businesses, bringing a high degree of uncertainty to the economic outlook around the world. While we believe this combination is a great opportunity for both companies, the timing is no longer right and we have brought our discussions to a close."
Heath added that Spectris has no businesses in Ukraine but said the company is "doing everything we can to help colleagues whose families are impacted and support the relief effort for the people of Ukraine".
Responding to Spectris’ statement, Oxford Instruments commented: “The proposal was unsolicited and the board continues to believe that Oxford has a clear and compelling strategy to achieve growth and create value for shareholders over the medium-term.”