Wasabi Energy and Australian Renewable Fuels (ARF) have decided not to go ahead with a proposed merger but both companies claim their growth outlook is strong.
In a statement, Wasabi said the decision had been made taking into account the current market conditions and the need to progress funding alternatives for both groups.
John Byrne, Executive Chairman of Wasabi said "While it is disappointing the merger is not progressing at this stage, the process and preparation that has gone into the merger negotiations and planning will be of benefit to each organization moving forward."
"Significant work has been done on forward planning for the operations and in identifying strengths, opportunities and strategies of each group such that these can be rapidly implemented," said Mr Byrne.
"Wasabi remains firmly committed to the development of ARF and will remain an active and supportive shareholder as they progress their activities and funding initiatives," he said.
In a statement Australian Renewable Fuels said the company was continuing the ramp up of its two Biodiesel plants and is making significant progress in its sales and marketing endeavours.
"Although the merger with Wasabi would have allowed ARF to achieve certain benefits, it is also clear that the ARF strategy to develop the business remains sound and can be achieved as planned', said Tom Engelsman, chief executive for Australian Renewable Fuels.
"The Board and Management are confident that the improving overall biodiesel market conditions should benefit the Company and that proposed funding alternatives will further solidify the company's position in the Australian Biodiesel sector," he said.
