Australian gambling operators Tabcorp and Tatts Group have broken off merger talks after failing to agree on the terms of such a move.

Last week, word broke that the two gambling companies were in discussions regarding some kind of union, be it a merger of equals or a takeover of Tatts by Tabcorp. The companies, which have a combined market cap of $9.4b, reportedly believed that a union was necessary to compete in the increasingly cutthroat Aussie market.

On Monday, the companies announced that talks had broken off. Tabcorp issued a statement saying there were “no further dicussions taking place between the parties relating to a merger or any other form of corporate transaction.” Tatts issued its own statement saying the parties had been “unable to reach agreement on key transaction terms, in particular as it relates to a nil-premium exchange ratio.”

Tabcorp’s shares lost around 10% of their value following last month’s uninspiring trading update. This fall is said to have negatively affected Tabcorp’s ability to negotiate and Tatts’ board of directors reportedly balked at the idea of giving Tabcorp shareholders a bigger share of the combined entity than the roughly 40% the companies’ respective market cap would reflect.