CTBC Financial Holding Co. has decided against a fresh offer for Shin Kong Financial Holding Co., paving the way for rival Taishin Financial Holding Co. to move ahead with one of the biggest combinations in Taiwan’s financial industry in years.

CTBC Financial Holding Co (中信金控) yesterday officially aborted its bid to acquire Shin Kong Financial Holding Co (新光金空) after financial regulators made clear their objections to the takeover. The nation’s third-largest financial conglomerate announced the pullback in a stock exchange filing,

Taiwan's financial regulator rejected on Monday a takeover attempt by financial conglomerate CTBC of rival Shin Kong saying its plans were incomplete. CTBC made an unexpected bid for Shin Kong last month,

Taiwan regulators rejected CTBC Financial Holding Co.’s $4.1 billion takeover bid for smaller rival Shin Kong Financial Holding Co., blocking the creation of what would have been the island’s biggest financial group.

The FSC added that CTBC’s merger plan included different stock acquisition ratios, with the lower limit of 10% failing to ensure absolute control over Shin Kong Financial. According to the FSC, this could lead to future disputes over equity and operating rights disputes.

TAIWAN regulators rejected CTBC Financial Holding’s US$4.1 billion takeover bid for smaller rival Shin Kong Financial Holding, blocking the creation of what would have been the island’s biggest financial group.