US food giant Kraft Heinz has withdrawn a £115bn bid for a mega-merger with Colman's Mustard owner Unilever, the firms have said.

In a joint statement the Heinz Tomato Ketchup and Philadelphia cheese manufacturer said it had agreed not to proceed with the offer it made on Friday for the Anglo-Dutch Marmite and PG Tips maker.

Unilever had already snubbed the offer, which represented an 18% premium on its closing share price of $50 per share (£40.26) on February 16, saying it 'fundamentally undervalues' the firm.

The joint statement read: 'Unilever and Kraft Heinz hereby announce that Kraft Heinz has amicably agreed to withdraw its proposal for a combination of the two companies.

'Unilever and Kraft Heinz hold each other in high regard.

'Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever.'

Unilever has a factory at Bracondale in Norwich.

Unilever, which saw its London stock value rocket 12% on the news, had demanded its shareholders take no action after Kraft suggested a merger.

The Pot Noodle maker said it saw 'no merit, either financial or strategic, for Unilever's shareholders', adding: 'Unilever does not see the basis for any further discussions.'

Kraft Heinz had remained optimistic a deal could still be reached, saying on Friday: 'While Unilever has declined the proposal, we look forward to working to reach agreement on the terms of a transaction.'

However, it said there was 'no certainty' a formal offer would be made.

The US food giant had until March 17 to table an official bid.

If successful, the tie-up would have been the biggest acquisition of a British company on record based on offer value.