Xchanging Plc has announced this week that Apollo Global Management LLC has pulled out from talks on its takeover.

The insurance-focused outsourcing company has confirmed Apollo briefed them regarding their decision to no longer pursue the bid. Apollo’s withdrawal effectively puts Capita at the top of the race to acquire Xchanging - the outsourcing giant and the US-based private equity firm were the only contenders for the takeover.

Last month, Xchanging informed it had settled with Capita on a recommended cash offer worth £412m.

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