CNH Industrial, the Netherlands-registered industrial holding company controlled by the Italian Agnelli family, said it had ended talks to sell its Iveco truck and bus business to Chinese truck maker FAW Jiefang Company.

The decision, after two years of on and off negotiations between the two parties, was welcomed by Italy’s minister of economic development Giancarlo Giorgetti.

CNH Industrial confirmed in a statement it had “terminated discussions with FAW Jiefang with regard to the company’s on highway business and continues to pursue its existing plans for a spin off of these activities in early 2022”.

It added: “CNH Industrial believes there are significant opportunities to develop its on-highway business by accelerating the deployment of ever more sustainable transport solutions and infrastructure, in line with the EU’s green deal ambitions”.

Bloomberg, citing a person familiar with the negotiations, reported CNH had abandoned the talks because FAW Jiefang, the subsidiary of Chinese state-owned automaker FAW Group, had not made an acceptable offer for Iveco.

The Italian government, which considers the production of heavy vehicles a “strategic national interest”, had opposed the sale of Iveco from the beginning.