FOSUN International Ltd. has dropped a plan to buy a controlling stake in Israeli insurer Phoenix Holdings because conditions for the 1.8 billion shekels (US$462 million) deal were not met, Fosun and seller Delek Group said yesterday.

    It is the first major setback for the Chinese conglomerate since its chairman, Guo Guangchang, briefly went missing late last year.

    Fosun agreed to buy a 52.31 percent stake in Phoenix from Delek Group in June last year. But the Chinese company was unable to “consummate” the deal to the satisfaction, or waiver, of the closing conditions of the agreement, Fosun said in a statement to the Hong Kong Stock Exchange yesterday.

    Neither party will be obligated to pay termination fees, Fosun said.

    Guo, one of China’s most successful private businessmen, was called in to assist authorities in an investigation in December, sparking concern that he was caught in the government’s anti-corruption campaign.

    After Guo went missing, the Tel Aviv Stock Exchange suspended trading in Phoenix and its parent company Delek. Representatives from Fosun also flew to Israel in December to discuss the deal.

    Energy conglomerate Delek said in a separate statement it was examining other options for the sale of its stake in Phoenix with other potential investors and would issue a new statement if there was a significant development.

    Guo has spent more than US$30 billion over the past decade building a business empire, spanning financial services, real estate to leisure industry.(SD-Agencies)