LOS ALAMITOS — Pacific International Enterprises Inc. said its proposed merger with men's apparel producer Third Rail Inc. was canceled by mutual consent.
Pacific International said it determined the overall costs of the merger to be "simply too great." The company had agreed to acquire Third Rail for note, cash and stock of undisclosed amounts.
Pacific International said completing the merger would add $1.2 million in debt to its balance sheet and would have required an additional cash outlay of about $2.5 million.
The company said canceling the proposed merger is not expected to have any adverse effect on the operations of either company.