Saudi Arabia’s City Cement Company is putting on hold its plans to acquire 100% of the shares held by Umm Al Qura Cement Company (UACC) via a share swap arrangement.

The manufacturer confirmed on Tuesday that the Capital Market Authority (CMA) did not approve the prospectus or “offer document” it had earlier submitted for the acquisition.

“[The rejection] was based on a breach of the Capital Market Law and its implementing regulations, specifically related to governance requirements,” the company said.

The company earlier announced its intention to buy all 55 million shares of UACC, each with a nominal value of SAR 10 ($2.66). In exchange, the company intended to issue more than 61 million of its own shares for UACC’s shareholders.

However, City Cement clarified that the offer is not completely off the table, citing that it still intends to resubmit the offer once all the regulatory requirements are met.

(Writing by Cleofe Maceda; editing by Brinda Darasha)