Prudential plans to terminate its proposed acquisition of AIA after failing to reduce the $35.5bn cost of the deal.
The group was unable convince AIA owner AIG to lower the price of the transaction to $30.38bn. Pru has therefore abandoned its plans for the UK's largest rights issue.
Pru will make a £450m loss on the failied acquisition, which includes a £152.6m break fee to AIG.
Both chairman Harvey McGrath and Tidjane Thiam blamed market movements on the failure of the deal.
"While AIA was an excellent opportunity, since we announced the potential transaction we have seen significant falls in the markets," McGrath says.
"We listened carefully to shareholders over the price and initiated a renegotiation of the terms with AIG.
"Unfortunately, it has not been possible to reach agreement so we feel it is in the best interest of our shareholders not to pursue this opportunity."
Pru says its strategy, to allocate capital in priority to the most profitable geographies and products, with a particular focus on Asia, remains unchanged.
Its reconvened AGM will go ahead as planned on 7 June.
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