Wifag has issued a statement saying it had "proved impossible to reconcile the interests of both parties", but added that both were still "open to the idea of co-operation on a technical level".

Last month, PrintWeek reported that the two companies were in discussions about a deal, that a letter of intent had been signed by both parties and that a contract was due to be signed this spring.

Manroland said at the time that the deal would extend its leadership in the newspaper printing sector and put it ahead of Goss and KBA in the web offset market.

However, Wifag said today (13 April): "Based on the findings of the past three months, Wifag will now realise a service business model independently.

"This will enable Wifag to fulfil its obligations vis-à-vis its customers and guarantee the quality of service to which they are accustomed."

The proposed deal would have guaranteed the continuing existence of the Wifag brand and customer relations, and Wifag would still be based out of Bern, Switzerland. No mention was made of changes to manufacturing.

Today's announcement does not rule out other deals, Wifag said.

"Further solutions with industry representatives remain an option," it announced. "As already reported, negotiations are being carried out in relation to the sale of individual processing centres in parallel to the restructuring process."

Wifag produces newspaper, packaging, converting and digital presses. Last year it employed 1,500 people worldwide and had a turnover of CHF500m (£307m).

The firm said last October that it was looking for a partner as it introduced a series of cost-saving measures, including 300 redundancies.