Advent International has withdrawn from a $1.1bn deal to acquire Ginko International’s mainland China business from EQT, paying about $10m in breakup fees after the transaction fell through at the final stage, according to sources cited by Bloomberg.

The Boston-based private equity firm had been in advanced talks to acquire the contact lens maker’s China operations, Ginko’s largest sales market. Sources said Advent went quiet during the summer after attempting to renegotiate terms, a move EQT rejected.

The collapse highlights the broader difficulties private equity firms face when seeking exits in China. While stock markets in Shanghai, Shenzhen, and Hong Kong have performed strongly this year, IPOs often face bottlenecks from regulatory reviews and geopolitical scrutiny. At the same time, strategic buyers remain cautious amid uncertainty over the pace of China’s economic recovery.

Despite these headwinds, private equity continues to explore opportunities in Asia. Firms remain active in pursuing growth investments and carve-outs, even as exit conditions for existing holdings prove more complex.

Ginko, which produces conventional and disposable contact lenses alongside lens-care products, was listed on the Taiwan Stock Exchange before being taken private in 2022 by Baring Private Equity Asia, now integrated into Stockholm-based EQT.

Advent and EQT both declined to comment on the transaction.

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