(Reuters) -British electrical engineering firm Spectris (LON:SXS) Plc said on Monday it had ended talks regarding a possible bid worth 1.79 billion pounds ($2.37 billion) for Oxford Instruments (LON:OXIG), due to global economic uncertainties caused by Russia's invasion of Ukraine.
Shares in Oxford Instruments, a nanotechnology tools and services provider, plummeted nearly 22% on the news.
Oxford Instruments last week said it had received a potential cash-and-stock offer from Spectris, valuing it at about 31 pounds a share.
The Russia-Ukraine conflict has sparked a high degree of uncertainty in the global economy, with most countries cutting off trade ties with Russia and multiple companies suspending operations there.
"While we believe this combination is a great opportunity for both companies, the timing is no longer right and we have brought our discussions to a close," Spectris Chief Executive Officer Andrew Heath said.
Oxford Instruments said its board continues to believe that Oxford has a clear and compelling strategy to achieve growth and create value for shareholders over the medium-term.
While Spectris has no operations in Russia, Oxford Instruments ceased its trading in the territories of the Russian Federation and Belarus on Friday.
($1 = 0.7564 pounds)