(Yicai) Jan. 7 -- Shares of Haier Biomedical and RAAS Blood Products plunged after the laboratory refrigerator and freezer manufacturer under Chinese electronics conglomerate Haier Group and the maker of plasma-derived products terminated their merger.

Haier Biomedical [SHA: 688139] closed down 10.8 percent at CNY31.40 (USD4.29) in Shanghai today. RAAS’s stock [SHE: 002252] fell 4.85 percent to CNY6.87 (94 US cents) in Shenzhen.

The merger termination is because of the complexity of the transaction structure, as Hair Biomedical and RAAS were unable to formulate a specific plan suitable for all parties involved, the two companies announced in separate statements yesterday.

On Dec. 23, Haier Biomedical said in a statement that it planned to merge with RAAS by issuing shares to all the latter’s shareholders to optimize its blood products industrial portfolio while capitalizing on synergies with RAAS to create a leading biotechnology company with sustainable growth potential.

The restructuring was part of a coordinated arrangement by Haier, which became RAAS’ actual controller in July last year after purchasing a 20 percent stake, according to RAAS.

Haier Biomedical yesterday also announced that it plans to repurchase up to CNY200 million (USD27.3 million) worth of shares to finance future employee stock ownership or equity incentive plans.

Meanwhile, RAAS said that its shareholders proposed a buyback of shares of CNY250 million to CNY500 million for the same purposes.

Editor: Futura Costaglione