There is not enough evidence for a prosecution, the CPS has said.
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One of the highest profile murders in Sussex looks like it will never be solved after it emerged the case is no longer being investigated.
Millionaire businessman Richard Watson was shot dead at his home in East Grinstead in 1996 in what appeared to be a contract killing.
A first police investigation into the murder was highly criticised after Mr Watson's widow and stepdaughter were tried and then acquitted of the crime when the case collapsed.
But now the Crown Prosecution Service (CPS) has said the case in no longer under active investigation.
'Distressed and disappointed'
Sussex Police had launched a second inquiry into Mr Watson's death earlier this year.
They had named a hitman currently in prison as the prime suspect.
But after sending a file to the CPS the police have now revealed no prosecution will take place.
In a statement the force said: "The CPS has advised police that they will not be taking any further action.
"Although the investigation into Mr Watson's murder will not now be under investigation it will always be re-visited in the light of new evidence."
Gary Perry, Sussex CPS chief prosecutor in, said: "I looked at the evidence carefully on the basis of whether there was sufficient for a realistic prospect of conviction and of the admissible evidence available to me I am afraid there was simply not enough evidence to mount a prosecution."
Mr Watson's widow, Linda, said she was distressed and disappointed by the news.
She said: "I have no faith in Sussex Police at all."