China is planning to abandon the megadeal of state-owned groups ChemChina and Sinochem that once aimed to create one of the world’s largest chemicals conglomerates.

The merger process, which has been years in the making, has been beset by challenges in bringing the two management teams together, including clashes between senior executives, according to two people close to the matter.

The companies have also struggled to determine how a change in ownership of a number of global ChemChina assets, such as Swiss agrochemical giant Syngenta, would be treated by US national security watchdogs. Relations between Washington and Beijing have deteriorated in recent years, with the two countries engaged in a fierce trade war and rising geopolitical tensions.