Lion Nathan, the drinks group 46 per cent owned by Kirin of Japan, has abandoned its A$7.7bn ($5.3bn) pursuit of Coca-Cola Amatil after the proposed merger of the Australian-listed groups failed to win the backing of a key shareholder.

Coca-Cola, the US drinks group that is a major shareholder and supplier to CCA, sent a letter to Kirin informing the Japanese brewer that discussion had ended.