Last month, LSL and Countrywide announced that they were in discussions regarding a possible all share combination.
However LSL, the parent company of Primis network and TMA Club, has now confirmed that it does not intend to make an offer for Countrywide.
Countrywide came under fire for money laundering failures in 2019, facing a fine of £215,000 from HMRC in March and a further fine of £100,000 from RICS in November for failing to preserve the security of client funds.
HMRC found that Countrywide failed to conduct due diligence and proper record keeping.
RICS discovered that between 2008 and 2018, the agency transferred over £10 million of client funds, representing unidentified client balances that had not been claimed for six years or more, from the client account into the firm's office account.
