Mercedes-Benz pulls $1.6 billion buyout for luxury vehicles in US, China

A luxury carmaker has pulled its $1 billion buy-out offer to buy a controlling stake in the Chinese carmaker, according to Reuters.

The deal was announced on Friday by Mercedes-AMG, the world’s second-largest automaker.

The company said it had decided to pull out of the transaction after a series of problems with the deal.

“We remain confident that this transaction will achieve the highest possible value for our shareholders and accelerate the adoption of new technologies and products,” Mercedes-BMG chief executive Martin Winterkorn said in a statement.

China is the world largest car market, with over one-third of the world market.

The $1bn buyout is expected to bring Mercedes-Amg back into the top tier of global automakers, where it was last in the top quartile of the sector in 2014.