AF Legal (ASX:AFL) says the proposed merger with GTC Legal and execution of a share sale deed to acquire 100% of the issued share capital of GTC has been terminated.

The proposed merger was intended to create one of the largest personal services legal firms in Australia, but GTC had to pull out due to certain disclosures.

AF Legal says it will continue to apply its focus on its own ongoing operations.

The company?s share price closed up 16% today.