French sales outfits Roissy Films and Celluloid Dreams have cancelled the merger of their international sales activities because of a misconception that Roissy was financially backing its partner.

"Joining our two company names proved too confusing for buyers and producers," said Roissy Films chairman Raphael Berdugo. "Each of us will keep his autonomy, which does not mean we will not co-operate on a project-by-project basis, in which case we would share the receipts."

The two companies had planned to set up a joint sales outfit combining Roissy's catalogue of about 500 titles - including 200 classics by French film-makers such as Robert Bresson, Claude Chabrol and Eric Rohmer - with Celluloid's slate of French and foreign works. This year Celluloid is handling two titles selected for the Directors' Fortnight section of the Cannes Film Festival - Anne Villaveque's Petite Cherie and Edo Bertoglio's Downtown 81, which features the late Jean-Michel Basquiat.

Following their decision to cancel the merger, the two companies will make separate appearances at major film markets and festivals from Cannes onwards.