Amsterdam-based paints and coatings group AkzoNobel has ended its merger talks with Axalta after Nippon Paint of Japan made a higher all-cash offer for the US paints firm, the Telegraaf reported on Wednesday.

Akzo and Axalta had been in negotiations since the end of October and Akzo  had termed the potential deal a ‘merger of equals’.  Earlier this year, Akzo rejected several hostile takeover attempts by another US peer, PPG Industries.

In an effort to assuage shareholders, Akzo is planning to split off its chemicals operations to concentrate on paint and coatings. Akzo said this operation remains on track.

‘AkzoNobel continues to focus on its strategy of accelerating sustainable growth and profitability through the creation of two focused, high-performing businesses and remains committed to its 2020 financial guidance,’ the company said in a statement.