European Wealth Group (EWG) has scrapped its plans to acquire American broker-dealer Newbridge.
The deal was first announced in October 2017 and received approval from FINRA last month.
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Following the FINRA nod, European Wealth began the final stages of commercial due diligence on Newbridge to assess whether the remaining closing conditions can be satisfied.
The two companies have now mutually decided to terminate the proposed deal as they failed to agree on the remaining conditions of the deal.
EWG CEO Marianne Ismail said: “While we have decided not to proceed with the acquisition of Newbridge, we remain committed to our strategy and are ambitious to grow both organically and dynamically by acquisition in the US and Europe.
“Since my appointment in September, we have conducted an extensive strategic review of the operating businesses and put in place a significant number of positive measures to position the Group for growth, to markedly reduce operating costs and to grow AUM and recurring fee income. As a result of the recent fundraising the Group is debt free and well-positioned to take advantage of the long-term growth opportunities present in the global wealth management and financial planning market.”
The deal, if materialised, would have increased EWG’s assets to around $4bn.
