Pirelli & Co. Group, Pirelli & Co Real Estate and Fondi Immobiliare Italiani (Fimit) said in a joint statement on Friday that they have suspended a merger study to create Italy's leading asset manager.

Pirelli & Co. Group, Pirelli & Co Real Estate and Fondi Immobiliare Italiani (Fimit) said in a joint statement on Friday that they have suspended a merger study to create Italy's leading asset manager.

The companies, which announced in November they were considering an integration of their real estate activities, said that the operation 'is not compatible in timing with the Pirelli RE real estate development plan already underway, and with the reorganisation process at Fimit.'

The merger would have created a giant in the Italian real estate management and services industry, with roughly EUR 11 bn of assets under management in the Italian property market.

Tyre conglomerate Pirelli & Co Group added that it intends to go forward with its plan to spin off its loss-making real estate activities before the end of the year. 'The group in any case will continue in the process of focusing the business on industrial activities, moving ahead with the plan for separation of the real estate assets,' it said in a statement.

Pirelli RE is currently 56%-controlled by Pirelli & Co. Group.