LONDON (AP) — Prudential PLC says that its $35.5 billion agreement with US insurer AIG to acquire its Asian business has been terminated.

AIG — American International Group Inc. — effectively killed the deal on Tuesday when it said it would not negotiate a lower price for its Asian unit, AIA.

Prudential had faced strong resistance from shareholders who believed it was paying too much for AIA, and was uncertain whether it could win the required 75 percent backing from shareholders.

Prudential's announcement yesterday formally marks the end the process, a day after the British insurer said it intended to terminate the agreement.