South Korea’s Jeju Air says scraps deal to acquire budget carrier Eastar Jet

South Korea’s top budget carrier Jeju Air Co Ltd (089590.KS) said on Thursday it decided to scrap a deal agreed in principle to take over smaller Korean peer Eastar Jet, after the industry was hit by air travel slump amid the coronavirus outbreak.

In March, Jeju Air agreed to acquire 51% of Eastar Jet for 54.5 billion won ($45.52 million), a price lower than a preliminary deal to pay about 69.5 billion won that Jeju Air reported in a regulatory filing in December.

Jeju Air cited unnamed key violations of undisclosed preconditions. Eastar Jet could not be immediately reached.