JAKARTA/SEOUL, Sept 19 South Korea's Hanwha
Chemical dropped a plan to buy Indonesian chemical
producer Sulfindo Adiusaha in a potential $700 million deal,
said two source familiar with the matter on Monday.
The second round of bids for Sulfindo is due later this
month, with the deal attracting foreign players including Thai
industrial conglomerate Siam Cement .
"Hanwha is out of the race due to pricing issue," a source
with direct knowledge to the deal told Reuters, declining to be
named because of the sensitivity of the issue.
A Hanwha spokesman could not be reached for comment.
Sulfindo is controlled by the Victoria Group, owned by
Indonesia's Tanojo family, who also own small lender Bank
Victoria and brokerage Victoria Securities. Macquarie
is the sell-side adviser for the deal, three sources
told Reuters earlier.
(Reporting by Janeman Latul in Jakarta and; Ju-min Park in
Seoul; Editing by Hans-Juergen Peters)