VICTORIAS Milling Co., Inc. and LT Group, Inc. announced on Tuesday that both parties agreed not to proceed with the sale of Asian Alcohol Corp., a rectified and denatured alcohol firm.

“In view of recent global as well as local economic and political events affecting the relevant industries, both parties have mutually agreed not to proceed with the transaction,” the firms said on Tuesday.

Asian Alcohol is a subsidiary of LT Group’s Tanduay Distillers, Inc., which is said to have recognized the present difficult environment surrounding the sugar industry.

“[Tanduay Distillers will] continue to find other beneficial avenues for deriving best value from its investment in Asian Alcohol,” it said.

In September, both companies announced in separate disclosures the signing of a sale and purchase agreement for the 100% outstanding capital stock in Asian Alcohol Corp.

The agreement was signed with two other shareholders — Prior Holding, Inc. and Castelbridge Investment Corp. — and covered 738.33 million common shares of Asian Alcohol.

The purchase price was P2.21 billion with the transaction expected to lower Victorias Milling’s operating costs and improve its margins.

Victorias Milling previously said that it will be focusing to become a fully integrated sugar business by diversifying into ethanol and power generation.

On the stock exchange on Tuesday, shares in LT Group closed unchanged at P8.91 apiece, while shares in Victorias Milling also closed unchanged at P2.80 each. — Justine Irish D. Tabile