US insurer American International Group (AIG) has ended its talks to buy three Hyundai Group-affiliated financial companies because it was unable to secure a key concession from the South Korean government.
The collapse of the 18-month talks means the end of a deal that would have been the largest foreign investment in the country's financial sector.
The three companies were Hyundai Securities, Hyundai Investment Trust & Securities and its unit Hyundai Investment Management.
AIG and WL Ross, a US investment company, had been in talks with the Korean government to buy controlling stakes in the three companies for about KRW1.1trn (£580m).
AIG said in a statement: "Despite the best efforts of all the parties concerned, it appears that an agreement will not be attained."
