US spice maker McCormick Foods walked away from its takeover proposal for British food company Premier Foods on Wednesday.

McCormick said in a statement that following due diligence it had decided it would not be able to propose a price that would be recommended by Premier’s board, while also delivering appropriate returns for its own shareholders.

Premier in turn said it and its advisers had “engaged extensively” with McCormick to provide it with the information requested, adding that the board “appreciates the open and constructive spirit in which the engagement with McCormick was conducted”.

The maker of Mr Kipling cakes and Bisto gravy said it "sees a strong future for an independent Premier Foods, and believes that the foundations have been laid for significant growth and shareholder value creation".

It repeated that its longer-term prospects will be enhanced by the cooperation agreement it signed with Japanese noodle maker Nissin Foods Holdings, which it said will expand its range of growth opportunities.

Reuters