Cranswick PLC (LON:CWK) said it has withdrawn from the acquisition process for Inspired Pet Nutrition but did not give any further details.
The FTSE 250 company said on Wednesday it was looking to snap up the dog and cat food producer, best known for the Harrington and Wagg brands.
READ: Cranswick looks to collar pet food acquisition
Pet food has been a growing market in 2020, with around 41% of UK households owning a furry friend, though Cranswick exited the sector in 2009 with the sale of its Pet Products arm.
Analysts at Peel Hunt said on Wednesday the price tag was likely to be over £200mln in what would be a competitive auction process.
“This is not a surprise, as pet food is a hot space at present, and it is likely that price-to-earnings would see potential for greater returns than if looked at on a return on investment basis,” the broker commented on Thursday.
Shares remained flat at 3,546p on Thursday morning.