Saudi Paper Manufacturing Co said on Saturday it has dropped plans to acquire a 51-per cent stake in Marocco's Cellulose du Maroc, citing market conditions.

"The variables of current and future mechanisms of the paper pulp market made it difficult to reach a decision that would create added value for shareholders," Saudi Paper said in a statement posted on the bourse website.

Morocco's state-owned fund CDG Development said in April it was discussing a deal to sell a majority stake in North Africa's biggest paper pulp maker to Saudi Paper.

The agreement would have valued Cellulose du Maroc at up to 620 million Moroccan dirhams ($72.6 million), the fund said then.

Saudi Paper's stock closed 1.1 per cent up on Saturday after it announced the cancellation of the plans. The all-share index  gained 0.2 per cent. – Reuters