This post has been updated to include a statement from Secretary of Defense James Mattis and Philip Bilden.

Financier Philip Bilden has withdrawn himself from consideration to be the next Secretary of the Navy, he said in a Sunday statement.

In the statement, Bilden said he would be unable to meet the requirements of the Office of Government Ethics requirements for the position without “materially adverse divestment” of his family’s financial interests.

“I fully support the President’s agenda and the [Secretary of Defense James Mattis’] leadership to modernize and rebuild our Navy and Marine Corps, and I will continue to support their efforts outside of the Department of the Navy,” he said in the statement.

“However, after an extensive review process, I have determined that I will not be able to satisfy the Office of Government Ethics requirements without undue disruption and materially adverse divestment of my family’s private financial interests.”

In a Sunday statement, Mattis said the withdrawal “was a personal decision driven by privacy concerns and significant challenges he faced in separating himself from his business interests. While I am disappointed, I understand and his respect his decision, and know that he will continue to support our nation in other ways.”

Mattis also said, “in the coming days I will make a recommendation to President Trump for a leader who can guide our Navy and Marine Corps team as we execute the president’s vision to rebuild our military.”

Bilden was formally nominated as Navy Secretary on Jan. 25 after back-and-forth reports in the media as to whether he or former congressman Randy Forbes would get the job.

The White House called Bilden “a highly successful business leader, former Military Intelligence officer, and Naval War College cybersecurity leader [who] will bring strategic leadership, investment discipline, and Asia Pacific regional and cyber expertise to the Department of the Navy” in its statement announcing Bilden’s selection.

Bilden served as a military intelligence officer in the U.S. Army Reserve from 1986 to 1996 after attending Georgetown University on an ROTC scholarship. In 1996 he moved to Hong Kong for business and resigned his commission.

In recent years, he had been involved with the Navy through serving on the Board of Directors of the United States Naval Academy Foundation and the Board of Trustees of the Naval War College Foundation. Additionally, one of his sons graduated from the Naval Academy and another is currently a midshipman there, and the White House statement noted that he comes from “a military family with four consecutive generations of seven Bilden Navy and Army officers.”

Former NATO supreme allied commander retired Adm. James Stavridis – who also serves as the chairman of the U.S. Naval Institute Board of Directors – said Bilden’s expertise in Chinese affairs would be an asset.

“He is a man of extraordinary expertise on maritime and nautical affairs. He is an expert on Asia and understands, in particular, China very deeply,” Stavridis told USNI News last month.

“He’s a highly distinguished businessman who understands efficiency. … He has unimpeachable integrity and is one of the kindest, smartest people I have ever met.”

Though an early favorite to take the job, Forbes is considered to be out of contention for the position. Last week he was named a visiting professor at the Naval War College. While the White House approves of Forbes, he was passed over for the SECNAV job by Mattis, who preferred Bilden for the role.

The following are complete statements from Defense Secretary Jim Mattis and Mr. Philip Bilden:

Statement by Secretary of Defense Jim Mattis:

Mr. Philip Bilden has informed me that he has come to the difficult decision to withdraw from consideration to be secretary of the Navy. This was a personal decision driven by privacy concerns and significant challenges he faced in separating himself from his business interests. While I am disappointed, I understand and his respect his decision, and know that he will continue to support our nation in other ways. In the coming days I will make a recommendation to President Trump for a leader who can guide our Navy and Marine Corps team as we execute the president’s vision to rebuild our military.

Statement of Mr. Philip Bilden:

“I informed Secretary of Defense Mattis with regret that I respectfully withdraw from consideration as Nominee for the 76th Secretary of the Navy.

I fully support the President’s agenda and the Secretary’s leadership to modernize and rebuild our Navy and Marine Corps, and I will continue to support their efforts outside of the Department of the Navy.

However, after an extensive review process, I have determined that I will not be able to satisfy the Office of Government Ethics requirements without undue disruption and materially adverse divestment of my family’s private financial interests.

I am deeply grateful for Secretary Mattis’ enduring support and confidence throughout the nomination process.

I have been greatly honored by President Trump’s consideration of me to lead our committed and capable Sailors and Marines who defend our Nation’s interests at home and in harm’s way.”