Share prices of Eshraq Properties plummeted over 8.82 per cent on Tuesday as the company said it is dropping plans to merge with Reem Investments. The deal would have created Abu Dhabi’s second largest listed property developer.

In a statement to the Abu Dhabi bourse website, Eshraq said that the investment “will not be completed,” as the two parties “have not been able to agree on major commercial matters underpinning the deal.”

Eshraq’s share prices ended the day at Dh0.62, with the stock being among the most actively traded by volume on the Abu Dhabi Securities Exchange (ADX).

In late August 2017, Eshraq said it was in advanced discussions regarding Reem coming in as a strategic shareholder. This would be in consideration for the acquisition of Reem’s business and assets in a deal that would merge the two developers.

Two weeks later, Shuaa Capital, the investment bank that was serving as Eshraq’s financial adviser on the deal, told Gulf News that the deal is expected to be finalised within three months.

On Tuesday, in its statement, Eshraq did not provide details on why the deal could not be completed or whether it will look for another strategic investor.