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Honeywell (HON) announced on Tuesday that it was withdrawing its $90 billion bid for United Technologies (UTX), ending what was shaping up to be one of the biggest merger battles in early 2016. Honeywell made the decision to relinquish its bid after a rival consistently argued that government regulators would block the merger.

Honeywell released a statement on the issue just one day before it delivers an annual presentation for investors. The company maintained that the merger would have likely posed little antitrust risk, and the combined company would have created a $160 billion giant offering a myriad of products ranging from advanced jet engines to thermostats.

Despite having faith in the proposed merger, Honeywell was left with few options for prolonging its fight for United Technologies. The company missed the January 28 deadline to nominate candidates for United Technologies’ board. In addition, major customers of both companies have expressed concerns over the proposed deal, including Boeing and Airbus.

Shares of United Technologies had risen 9.5% since announcing that the two companies were in merger talks. Honeywell’s shares, on the other hand, have fallen 5%.

Chairman and chief executive of Honeywell, David M. Cote, said, “We made a full and fair offer.” He further noted that the merger would “greatly benefited” both parties. But negotiating with an unwilling partner is not a part of Honeywell’s acquisition process, he claimed.

Shares for Honeywell rose 2.5% early on Tuesday. Shares for United Technologies dropped over 3% on the news.

Tuesday’s announcement marks the end of nearly a year’s worth of merger discussions between both companies. Negotiations went back and forth, and the companies were in constant disagreement over who would run the combined company. Both Honeywell and United Technologies were competing for control. All the while, United Technologies’ shares fell, while Honeywell’s remained stable.

Mr. Cote and his advisors were convinced that the merger would result in $3.5 billion in savings.

Just last month, Honeywell offered $108 per share in stock and cash, which was approximately 22% higher than shares prices for United Technologies at the time. At first, United Technologies called the combination “fabulous,” but later refused the bid, calling it unacceptable.