Both parties have decided that they will not be able to attain the necessary 75 per cent majority vote to approve the scheme of arrangement proposed between CFR Pharmaceuticals and the holders of Adcock Ingram Ordinary Shares.
CFR, the Chilean pharmaceutical company, initially made an offer to Adcock Ingram to purchase the drug maker's ordinary shares worth 12.8 billion rand.
With the deal, CFR also promised to invest between 6.4 billion rand and 8.2 billion rand into South Africa for job creation, enhancing black economic empowerment, developing export markets and listing the combined business on the Johannesburg Stock Exchange.
However, shareholders of Adcock raised concerns about an international buyout and South Africa’s Bidvest Bank has since increased their cash offer to 34.5 per cent for a stake in Adcock Ingram.
The offer is still under review by Adcock shareholders.