Lion Nathan, owned by Japanese giant Kirin Holdings, which supports the bid, made the cash and stock offer to acquire the drinks maker on November 7 in a deal that would have formed the country's largest beverages empire.

But Coca-Cola Amatil (CCA) ended talks with Lion Nathan on Monday after the offer was judged too low by its largest shareholder, the Atlanta-based Coca-Cola Company which controls 30 percent of its stock.

Due to "a number of material deficiencies in the proposal, and the highly conditional nature of the proposal, the board of Coca-Cola Amatil has decided not to progress any further review of the proposal and has advised Lion accordingly," the company said in a statement.

CCA had earlier said that the "pricing multiple proposed is materially below recent multiples paid for domestic and international beverage companies".

It said shareholders had been offered a mix of A$4.54 billion in cash as well as shares.

Under the proposal, CCA investors would have received A$6.15 in cash and 0.469 Lion Nathan shares for each share they owned, representing a consideration of A$10.35 per CCA share.

The bid was 25 percent higher than CCA's closing price of A$8.25 on Friday. But CCA said the premium on the closing price was insufficient.

Had the deal gone ahead, the combined group would have drawn about A$6 billion in revenues annually, reports said, through household brands including Coca-Cola, Toohey's beer, XXXX lager, Mount Franklin bottled water and James Boag Beer.

The bold move by Lion and its parent company would have marked the latest Australian acquisition this year for Japan's Kirin Holdings.

In August, Kirin unit National Foods acquired Australian milk, cheese and yoghurt cooperative Dairy Farmers for A$910 million as Japan's second-largest beer maker seeks to expand its business outside of its shrinking home market.

Lion Nathan shares closed down 30 Australian cents, or 3.35 percent, to A$8.65 on Monday, while Coca-Cola Amatil rose A$1.06, or 12.85 percent, to A$9.31.