PRECISION equipment manufacturer Spectris announced it had abandoned its takeover bid for microscope-maker Oxford Instruments yesterday, citing the market volatility sparked by Russia's invasion of Ukraine.

Bosses at Spectris said there was still a "highly compelling" rationale for pursuing the deal but pushing ahead would not be in investors' best interests amid the market volatility.

"With the invasion of Ukraine, the world has changed since our proposed offer was made regarding a combination of our businesses, bringing a high degree of uncertainty to the economic outlook around the world," Spectris chief executive Andrew Heath said.

The withdrawal makes the deal one of the first in the UK to be directly disrupted by the war, with fears growing that the war could dampen deal activity this year.

Data from Refinitiv last week found that UK dealmaking fell 35 per cent in February.

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