NEW YORK CITY-Deutsche Bank AG and locally-based Guggenheim Partners have ended exclusive negotiations over a potential sale of RREEF, Deutsche’s real estate investment and management arm, after both parties “were unable to agree on terms for the sale of the business,” the Frankfurt-based bank unveiled in a statement today. It's the second shoe to drop in the massive deal unraveling. As GlobeSt.com reported on May 11, Deutsche agreed with Guggenheim to end exclusive negotiations on a potential sale of DWS Americas, the bank’s mutual fund business in the Americas; DB Advisors, its global institutional asset management business; and Deutsche Insurance Asset Management, the global insurance asset management business.

After the negotiations fell through, the bank has also concluded a strategic review of its global asset management division. Initiated in November 2011, the review examined all divisions except for the DWS franchise in Germany, Europe and Asia. Following the announcement, Deutsche says it will "make a further update on its asset & wealth management division as part of its commitment to communicate a long-term, bank-wide strategy in September."

The transaction was rumored to go as high as $2 billion US, or $1.5-$1.6 billion Euros. As of press time, it is unclear what caused the negotiations to end.