OREANDA-NEWS. March 13, 2014. China New Energy has announced that it will not be continuing with its acquisition of BAPP Ethanol Holdings following due diligence findings.

A memorandum of understanding (MOU) was entered by the bioenergy engineering and technology company to acquire BAPP Ethanol in December last year.

At the time, China New Energy said that BAPP will have an indirect 75% interest in Harbin China Distillery Company, an owner and operator of a 60,000 tonne per annum bio-refinery near Harbin in North East China, following restructuring.

The deal will go no further, however, after legal and financial due diligence suggested the transaction ‘was not as first envisaged’, according to a company spokesperson.

The cost of the deal was expected to be roughly EUR18.2 million, with the acquisition potentially helping China New Energy become an operating company and provide a showcase for its energy efficiency technology and second-generation cellulosic biofuel production technology.