Leoni AG's agreement to sell its automotive cable solutions (BG AM) business to Thailand-based Stark Corp. has fallen through following an "unexpected demand" by the Bangkok-based manufacturer of wires and cables.
In a Dec. 13 statement, Leoni said that all conditions for the closing of the sale and purchase agreement had been "timely fulfilled" and that the closing had been scheduled to occur "shortly."
"However, the buyer Stark has today unexpectedly demanded very significant amendments to the purchase agreement," said the statement.
The German manufacturer said it had to refuse to agree with the new terms, despite its willingness to compromise.
The BG AM sale, announced in May, was part of Nuremberg, Germany-based Leoni's plans to streamline its businesses and to narrow focus on its wiring systems business.
The unit operates 10 production locations across seven countries and employs 3,300 people.
It generated sales of about $1.3 billion last year, and is valued at $596 million, according to Leoni.
In 2019, Leoni announced the decision to streamline its structure with a plan to divest its Wire & Cable Solutions (WCS) business.
The German cables specialist intends to focus more on its other core business Wiring Systems Division (WSD) which specializes in energy and data systems.
Among other products, the automotive cables unit supplies thermoplastic elastomer-based and elastomeric cables to car manufacturers.