(Sept 3): Temasek Holdings’ sale of a US$3 billion ($4.2 billion) stake in retailer AS Watson Group has been derailed under the twin pressures of Brexit and the anti-government protests rocking Hong Kong, people with knowledge of the matter said.

The Singapore state investment company put the process on hold after failing to reach agreement on valuation with potential buyers, said the people, who asked not to be identified as the discussions are private. In addition to the turmoil in AS Watson’s home market of Hong Kong, uncertainties around Brexit have affected the retailer’s business in the UK, where it runs the Superdrug chain, one of the people said.

Temasek, which owns a 25% stake of AS Watson, was considering selling about 10% of the retailer after receiving preliminary interest, Bloomberg News reported earlier this year. Abu Dhabi’s sovereign wealth fund and Chinese internet giants Tencent Holdings and Alibaba Group Holding were among parties that had shown interest in the stake, people familiar with the matter have said.

“As per our company policy, we do not comment on market speculation and rumors,” Temasek said in an emailed statement.

Temasek will keep looking into ways to improve the retailer’s valuation, one of the people said. It could still resume the sale process in the future, the people said. The Singapore investment firm bought the stake in AS Watson, which is a unit of Hong Kong tycoon Victor Li’s CK Hutchison Holdings, for HK$44 billion ($7.8 billion) in 2014.

Founded in Hong Kong in 1841, AS Watson runs more than 15,200 stores in 25 markets, including Kruidvat drugstores in the Netherlands and Rossmann pharmacies in Germany, according to its website. It also runs the Watsons chain of healthcare and beauty shops across Asia, as well as groceries, electronics shops and wine stores in Hong Kong. Among its 140,000 employees worldwide, 12,900 are based in the former British colony.