Seven Group Holdings Ltd. and Carlyle Group discarded its proposal to sell Coates Hire, Australia's biggest equipment rental company, after finishing its review of the company. Kerry Stokes, Seven Group Holdings' top executive, said that his company and Carlyle Group "remain fully committed to the business."

Seven and Carlyle each hold 45 percent of Coates Hire.

Coates was bought for A$1.7 billion or $1.6 billion in 2008. The owners of the company sought a larger amount for A$3 billion, said a source familiar with the deal.

Due to the decline in the country's mining boom and waning commodity prices, mergers and acquisitions in the Australian market dipped to its lowest level in almost nine years. Deals were valued to as low as $9.7 billion in three months to March from 2012, according to Bloomberg's data.

Carlyle, headquartered in Washington, and Seven Holdings also studied Coates Hire's initial public offering, said people with knowledge on the transaction. According to Coates Chairman Peter Gammell, constant inquiries from possible buyers prompted the proprietors to find alternative ownership.