Germany's KirchMedia and ProSiebenSat.1 have cancelled their planned merger which was to take place this June.
In an official communique stating that the merger would be "not feasible in the foreseeable future", the two indicated that they would nevertheless "continue to work together, as they always successfully have been doing, to maximise value in the interest of both, taking also advantage, where possible, of cost reduction potential already identified during the merger preparation".
In February, the two companies had already announced that "the proposed time schedule" for the merger would be "revised" although it was still their "conviction that the merger is the most desirable strategy for both companies".
In addition, the two boards had agreed at the time that KirchBeteiligungs' majority shareholding in the Formula One motor racing series "shall not be part of the merged company unless a satisfactory solution is previously reached with the racing teams and the automobile manufacturers involved" and concluded that "all parties remain fully committed to take all necessary actions to ensure that the merged entity will hold investment grade status".
ProSiebenSat.1 Media AG's shares rose by over 20% to Euros 11.45 at the end of trading on Wednesday (March 20) after the news of the merger plans being abandoned completely.