South Africa gaming and leisure giant Sun International Ltd. has agreed to pay R675 million ($42.8 million) to fellow hotel and casino operator Peermont Global after talks to acquire the closely held company breaks down.

Bloomberg reported that both gaming firms abandoned the deal after South Africa’s Competition Commission objected Sun’s plan to buy Peermont for R9.4 billion ($595.76 million).

Sun International has 26 resorts across Africa and the Americas, where it has a complex near Santiago and a casino in Panama. Peermont is owned by a private equity group led by the Mineworkers Investment Company and has 16 hotels across South Africa, Botswana and Malawi.

The gaming and leisure giant has earlier agreed to pay Peermont some R900 million ($57.15 million) if the deal breaks down and a new complex at Menlyn Maine, in the South African capital of Pretoria, has started operations. On Wednesday, Sun said it has already reached a settlement with Peermont in order to save the project, which is already at an advanced stage of construction.