Poor financial markets have forced UK buyout firm Candover to pull its takeover of Bourne Leisure, the owner of Butlins and Haven UK holiday parks, just days after it received regulatory clearance on the deal.

Both parties agreed not to go ahead with the deal due to the deterioration of the financial markets although the private equity house and company remain close, according to a source close to proceedings, who did not give any further details on why the deal collapsed.