Chinatrust quits Nan Shan unit acquisition

The $660mln takeover failed to materialise as lender let the acquisition agreement to expire.

China Strategic Holdings and Primus Financial Holdings have lost their Taiwanese partner Chinatrust Financial Holding in their $2.2 billion bid for AIG's Taiwan Nan Shan Life unit, a newspaper said on Friday.

Chinatrust, which last year agreed to buy 30 percent of Nan Shan from the Hong Kong companies once they acquired the insurer, would not pursue the deal, the South China Morning Post reported.

Chinatrust agreed to buy the Nan Shan stake last November for $660 million, but the memorandum of understanding expired on Friday.

Chinatrust officials were not immediately available for comment.

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