PayU, the payments and fintech unit of consumer internet group Prosus, has terminated its previously announced deal to purchase Indian digital payments provider BillDesk for $4.7bn.

The move comes after Prosus failed to meet ‘certain conditions’ of the deal before the 30 September deadline.

PayU even received approval from Competition Commission of India (CCI) for the now-terminated deal, which was reached in August last year.

In a statement, Prosus said: “Closing of the transaction was subject to the fulfilment of various conditions precedent, including approval by the Competition Commission of India (CCI).

“PayU secured CCI approval on 5 September 2022.

“However, certain conditions precedent were not fulfilled by the 30 September 2022 long stop date, and the agreement has terminated automatically in accordance with its terms and, accordingly, the proposed transaction will not be implemented.”

Prosus’ decision to terminate the deal is mainly driven by the current situation going on in markets across the globe that termed the deal as ‘over-priced’, Economic Times has reported citing people familiar with the matter.

Both Prosus and BillDesk did not reply to queries asked by the publication on the collapse of the deal.

If pulled through, the acquisition would have been India’s second biggest internet deal after Walmart bought a majority stake in Flipkart for $16bn in 2018.

The transaction would have increased Prosus’s total investment in India to more than $10bn.

Shareholders of BillDesk have already engaged law firms to challenge Prosus’ decision in court, stated a mint report, which cites five people associated with the deal.