The decision to abandon a scheme of arrangement that would have increased its indirect ownership in the unit to 75 percent is a fresh setback for Britain's biggest drugmaker, which is battling a corruption scandal in China.

The company said on Monday it had agreed to consult shareholders and the Securities and Exchange Commission about the proposal, including whether it should be implemented by way of a tender offer.

(Reporting by Ben Hirschler; editing by Keith Weir)