Kuwait's Al- harafi family has scrapped a sale of a majority stake in Kuwait Food Co (Americana) to a Gulf-based consortium, ending months of talks over the multibillion-dollar deal.
Americana's shares were suspended ahead of the market open and have yet to resume trading. Shares in Kuwaiti companies linked with the Al Kharafi family tumbled in the hours that followed the announcement on Sunday.
Investment company Adeptio, which is led by Dubai-based Emaar Properties chairman Mohamed Alabbar, had agreed back in February to buy 69% of Kuwait Food Co (Americana) from Al Khair for Stocks and Real Estate, which is run by the wealthy Kharafi merchant family, but the plans have been scrapped.
The stake would have been worth $2.15 billion, according to Thomson Reuters data.
Americana, which owns the Middle East franchises for fast food chains KFC and Pizza Hut and also produces branded consumer foods, has been up for sale since early 2014, reports sister publication Arabian Business.
"An agreement has not been reached between Al Khair and Adeptio and both sides have agreed to end all negotiations in regard to the acquisition," Al Khair said in a statement on Sunday. Americana made a similar announcement.
An Adeptio spokesperson said: "The parties involved could not reach an agreement on mutually acceptable terms."
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