Taiwan-based notebook battery makers Dynapack International Technology and Celxpert Energy, on December 15, announced the cancellation of their merger plans and will void their stock swap contract.

Dynapack and Celxpert originally planned merge via a stock swap with each Dynapack share exchanged for 1.7 Celxpert shares, but since the two firms had some disagreements over the ratio after the swap started. After trying to negotiate the two players have decided to void the contract.

Dynapack and Celxpert are the second and the third largest battery module suppliers in Taiwan. The merger was expected to create a threat toward the largest supplier, Simplo Technology. With the cancellation, Simplo is expected to continue to lead the notebook battery industry, according to market watchers.

As for the future, Celxpert will resume its capacity expansion plans which were halted because of the merger, the company noted.