Retail operator Modern Internasional announced on Monday that the acquisition of 7-Eleven convenience stores by Charoen Pokphand Indonesia had been cancelled because both parties had not reached an agreement.
“The deal was scrapped because related parties could not reach an agreement,” Modern Internasional director Chandra Wijaya said in a statement published on the Indonesia Stock Exchange.
On April 19, Modern Internasional, under its subsidiary Modern Sevel Indonesia, signed a business acquisition agreement with Charoen Pokphand Restu Indonesia worth Rp 1 trillion.
(Read also: 7-Eleven sold as business declines)
Despite having signed the conditional sales purchase agreement, the transaction was not considered effective as several requirements had to be resolved by related parties before June 30.
Modern Internasional was planning to sell its 7-Eleven stores amid intense competition from minimarkets Alfamart and Indomaret.
The company’s sales have also dropped in the past few years due to a government regulation that bans stores from selling alcoholic beverages.