(Toronto) Canadian media companies Postmedia Network Canada and Nordstar Capital, owner of the Toronto Star, have ended talks about a possible merger, saying they were unable to reach an agreement.

Both companies issued press releases revealing this development in this matter. Torstar noted that the additional backdrop of regulatory and financial uncertainty contributed to the end of the talks.

The two companies announced in late June that they were in talks to merge in a deal that would have seen Postmedia and Metroland Media Group join forces, while the Toronto Star would have been run by a new company.

They further claimed that the proposed deal would help them grow in order to address the “existential threat” facing the media industry.

But experts have sounded the alarm over what such a deal could mean for local news coverage and competition in journalism.

Postmedia laid off 11% of its editorial staff earlier this year.