LONDON (CNNfn) - Canadian drinks to entertainment group Seagram has ended talks with the U.K.'s Allied Domecq about creating a new industry giant according to a press report.
A combination would have brought together the world's second and third largest drinks groups and a rival in size to the industry's main player, Diageo (DGE).
But after seeing an improvement in its wines and spirits division in recent months, Seagram has now decided to got it alone, London's Financial Times reported Thursday.
The talks, which looked at a range of options from a joint venture to a full merger, had been going on for nine months.
Seagram wines and spirits division chairman John Hunter told the newspaper that the company wanted to be "master of our own destiny". He also ruled out an alliance with other large drinks groups like Bacardi-Martini.
Seagram (VO) warned analysts Monday that fiscal second quarter profits will fall short of Wall Street's expectations, reflecting difficulties at its film studio.