Weir Group has abandoned plans to create a £9 billion engineering giant after Finnish rival Metso rejected a takeover offer for the second time in two months.

Glasgow-based Weir went back to Helsinki-listed engineering firm Metso on May 20 with an improved proposal on its earlier approach in March.

It said the all-share deal represented a 13% hike on the previous proposals. It valued Metso's shares at 30.49 euros (£24.77) each, making the company worth about £3.7 billion.

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However, Weir - whose market value is about £5.5 billion - said the Metso board "did not engage" on this second proposal and that the Finnish company rejected it as significantly undervaluing the business.

The group said: "Weir believes it made a compelling proposal but remains financially disciplined and therefore does not intend to pursue this opportunity further at this time."