Two of Australia's largest gaming companies, Tabcorp and Tatts Group, have ended speculation that they are to merge, revealing an agreement could not be reached.

Although discussions took place, Tabcorp stated that the two parties were unable to agree on “mutually beneficial terms.”

Talks have now ended, it confirmed.

Aside from its Australian business, Tatts Group is the owner of Talarius, the UK’s largest chain of adult gaming centres.