China Vanke Co. Ltd. terminated its planned acquisition of the entire issued shares in Shenzhen Metro Group Co. Ltd.'s unit for 45.61 billion Chinese yuan.

A disagreement among some of the Chinese property developer's major shareholders over the details of the acquisition led it to end the deal to acquire Shenzhen Metro Qianhai International Development Co. Ltd.'s shares. China Vanke negotiated with these shareholders in an effort to convince them to support the transaction but was unable to reach an agreement with them as of Dec. 18, according to a filing.

China Vanke also considered the "significant price fluctuations" in its A shares since July 4 to be another factor leading to the termination decision. These factors were expected to produce "tremendous uncertainties" if China Vanke were to move forward with the acquisition, the filing noted.

Despite terminating the transaction, China Vanke still holds a positive outlook for the "railway+property" initiative that would have been the main model of the acquisition. It does not expect to incur any material adverse impacts on its short-term financial position due to the canceled deal.

In June, China Vanke considered the interest acquisition in the Shenzhen Metro unit as a means to defer a potential takeover by their shareholder Baoneng Group.

As of Dec. 16, US$1 was equivalent to 6.95 Chinese yuan.