The idea of sale of 42 per cent in the New Zealand electricity network company Powerco, was stopped by QIC.

It is the Queensland-based investment fund and holds stake in the company which is owned by Prime Infrastructure. QIC holds the rest of the 58 per cent in the company.

Prime has been trying to sell its stake to Toronto-based Brookefield Infrastructure Partners, which owns 40 per cent of ASX-listed Prime.

Brookefield is one of the listed companies which is into the business of infrastructure and timber investor at New York and Toronto Stock Exchange.

The merger of the two companies was supposed to take place in August.

QIC, with its stake, has blocked the sale. It is yet to see what Prime does to hold the other 8 per cent so that it becomes 50:50 partner in Powerco.

While no reason has been sited why the merger was so important, some high officials have said that this is being done since there are differences in terms of how Powerco should pursue growth.

Powerco is the second largest electricity network in New Zealand.