Malaysia’s diversified conglomerate UMW Holdings Bhd has scrapped plans to acquire a controlling stake in the country’s second national carmaker Perodua, according to local reports.

UMW is currently the largest shareholder in Perodua with a 38% stake, followed by local companies MBM Resources and PNB Equity Resource Corporation with 22.6% and 10% respectively; Daihatsu Motor 20%; Daihatsu (Malaysia) 5%; and Japan’s Mitsui the remainder.

Earlier this year UMW launched a mandatory general offer (MGO) for a 50.07% stake in MBM Resources, a deal that would have given it majority control of Perodua. The company had also offered to buy the 10% stake in Perodua held by PNB Equity Resource Corporation.

UMW this week said it has scrapped both acquisition plans, as well a planned MYR1.1bn (US$262m) rights issue that was to help fund the purchases.

A spokesman said the UMW board of directors “decided to allow the two offers to lapse and not to extend the offer period. The group will not pursue further the proposed acquisitions and the rights issue”.

UMW president and CEO Badrul Feisal Abdul Rahim said the group has revised its corporate strategy in view of the current business environment and will instead focus on improving its financial performance.