Acacia Communications Inc. (NASDAQ: ACIA) shares were up handily to close out the week after the announcement that it had ended its $2.6 billion merger agreement with Cisco Systems Inc. (NASDAQ: CSCO). Acacia noted a lack of approval from Chinese regulators as a catalyst.

The company pointed out that it did not receive approval from the Chinese government’s State Administration for Market Regulation before the January 8 deadline. Cisco may be looking to challenge Acacia’s right to terminate the merger in court as a result.

The deal was agreed to in July of 2019. At that time, Cisco had signed on to pay roughly $70 per share for Acacia for an aggregate of $2.6 billion.

Acacia’s PR team released a statement:

Because approval of the Chinese government’s State Administration for Market Regulation was not received within the time frame contemplated by the merger agreement, Acacia did not have an obligation to close the merger before the arrival of the Jan. 8, 2021, extended end date.

This deal was expected to close in the second half of Cisco’s fiscal year, which ends in July.

Excluding Friday’s move, Acacia Communications stock had underperformed the broad markets with a gain of only 6% in the past 52 weeks.

Acacia traded up about 11% on Friday, at $80.23 in a 52-week range of $60.62 to $81.00. The consensus price target is $70.00.

Cisco stock was trading at $45.01, in a 52-week range of $32.40 to $50.28. Analysts have a consensus price target of $48.27.

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