Plans to merge GDS Holdings Ltd.’s (NASDAQ: GDS) business with Singapore-based investment manager GLP Pte’s data centres in China have hit a wall after GDS stock failed to impress investors.

According to sources speaking to Bloomberg, as GDS’s stock fell by almost 60% in the last 12 months, the business’ capability to finance a cash-and-shares deal has been hindered.

The two parties may, however, still pick up merger discussions later on, the same people said.

The Tech Capital has reached out to both GDS and GLP for further information and we will update this article when more data is available.

News of the potential merger first surfaced in May 2021 when Bloomberg reported talks between GDS and GLP over a transaction in which GLP would have become a shareholder in GDS.

The deal was valued at the time by people familiar with the matter at $8 billion to $10 billion.

GDS enjoys a market cap of $8.69 billion at the time of writing.