Liaoning Fangda Group in March offered to acquire a stake in the central-China based steelmaker for at least 11 billion yuan ($1.64 billion) and had submitted an application for the purchase and a deposit to the Henan Zhongyuan Property Rights Exchange.

However, the two parties failed to reach agreement on terms of the mixed-ownership reform in the stipulated time, Anyang Group's listed arm, Anyang Iron and Steel Co Ltd, said in a filing to the Shanghai Stock Exchange.

The company's owner, the state-assets regulator in Henan province, had approved the scrapping of the public transfer, according to the filing, adding that the authority would decide whether the company would continue with the restructuring plan.

($1 = 6.6973 Chinese yuan)

(Reporting by Min Zhang and Dominique Patton; Editing by Robert Birsel)