Origin last month rejected the proposed merger, saying based on current market prices, it did not properly reflect the “fundamental value” of the two Sydney-based companies.

Nonetheless, Australia’s second-biggest electricity and gas retailer said it was still open to a fresh merger proposal from AGL, so long as the transaction was “value-adding”.

But speaking at the Citigroup Investment conference in London last night, Anthony said AGL would not be pursuing the proposal.

He said AGL had put a “very attractive” merger of equals proposal to Origin based on an exchange ratio, which would have had the potential to deliver a “very significant increase in earnings per share for Origin’s shareholders”.

Anthony said at the same time it would deliver significant benefits to AGL’s shareholders.

“We are firmly of the view that realisation of the full value for both AGL and Origin shareholders is only possible if a transaction can be achieved on a consensual basis,” he said.

“Origin has rejected AGL’s merger of equals proposal and refused to engage on the transaction.

“Accordingly, we have decided that we will not be pursuing our proposal.

“We also note that a merger ratio based on current market prices would not be attractive to AGL’s shareholders.”