UK insurer Prudential on Wednesday said that it was walking away from the $35.5bn (€29bn) takeover of American International Group's Asian life insurance unit after failing to renegotiate a lower price for the deal.

"Unfortunately, it has not been possible to reach agreement so we feel it is in the best interest of our shareholders not to pursue this opportunity. We are therefore withdrawing from the transaction," Prudential's chairman Harvey McGrath said in a statement.