AMA group has announced that its $508 million transaction with Blackstone will no longer go ahead after a decision from the Australian Tax Office (ATO) refused its request for a de-merger.
The formal response from the deputy commissioner of taxation means that there will be no break fees payable in relation to the transaction terminating with Blackstone.
The ruling was required for the business to undertake its proposed de-merger of its automotive component, accessory and procurement business.
According to a statement from the group, it had received advice that de-merger relief would be granted based on previous transactions and decisions.
“The AMA board is disappointed that the deputy commissioner of taxation has taken a different view as to the requirements for de-merger relief as compared with previous transactions, particularly given the advice the board received from its advisors that de-merger relief would be granted.
“The AMA board is pleased to advise, however, that despite the distractions of this transaction, the business has continued to perform strongly and is still on target with the market guidance released earlier in the year.”