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China's ENN to scrap deal for Toshiba's U.S. LNG business

Christian Fernsby |
China’s ENN Ecological Holdings Co said on Thursday it would scrap a deal to buy Toshiba’s U.S. liquefied natural gas business due to a failure to obtain approvals from shareholders and a U.S. panel that monitors foreign investments.

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The cancellation is a new blow to Toshiba, the once-mighty Japanese conglomerate, as it must look for a new buyer for the business that it previously said could potentially cause losses as much as 1 trillion yen ($9 billion).

A failure to find a buyer could derail Toshiba’s recovery from the fallout of the bankruptcy of its U.S. nuclear power unit Westinghouse.

In a separate statement, Toshiba said it was informed by ENN late on Wednesday that the board of the Chinese company had decided to terminate the purchase and sales agreement for the deal, and the decision would be submitted for approval at an extraordinary general meeting of ENN’s shareholders on April 29.

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