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One of Northern Ireland's biggest takeover deals has been called off.

Last year the owners of County Tyrone-based Euro Auctions agreed a deal to sell it to Canadian company Ritchie Bros for £775m.

However the UK competition watchdog, the Competition and Market Authority (CMA), began an investigation.

Ritchie Bros said it did not believe there was "any realistic prospect" the deal would be approved by the CMA.

Ann Fandozzi, the company's chief executive, said: "We are disappointed by the decision taken by the CMA to refer the proposed acquisition to a Phase 2 review and respectfully disagree with their views.

"While we believe the proposed acquisition would have accelerated our strategy, we remain committed to forging ahead in our transformational journey."

Euro Auctions said it would "like to thank all its customers and suppliers and in particular its employees for their continued loyalty and looks forward to a new and exciting future together as an independent company".

"The focus continues to be on the expansion and growth of the business," the firm added.

Euro Auctions was set up in Dromore in 1998 by Derek Keys and his brothers.

It has grown to have more than 200 staff across 14 countries.

The company buys and sells industrial plant, construction equipment and agricultural machinery all over the world and in 2020 conducted 60 auctions, selling close to 90,000 items for more than £484m.

The sales were spread across its nine locations in Great Britain, Northern Ireland, Germany, Spain, the United Arab Emirates, Australia and the US.

Ritchie Bros also works in buying and selling used heavy equipment across construction, transportation and agriculture.

During an initial review the CMA found the companies had a very high market share in the supply of auction services for heavy construction machinery.

Euro Auctions is the clear market leader, with Ritchie Bros ranked as the second largest provider.

Both firms offered undertakings to address the CMA's competition concerns but it was not convinced and began an in-depth Phase 2 review.

In March David Stewart, CMA executive director, said: "Many businesses across the UK rely on Ritchie Bros and Euro Auctions to buy and sell heavy construction machinery in the UK.

"This merger would combine the two largest auction providers in this sector, risking higher commissions and lower service quality.

"We are not satisfied that the proposed undertakings from Ritchie Bros would fully address these concerns, which is why we are moving on to an in-depth Phase 2 investigation."