LONDON (AP) — British natural gas producer BG Group PLC yesterday abandoned its hostile takeover bid for Origin Energy Ltd., Australia's second-largest power retailer.

BG Group, Britain's third-largest oil and gas company, conceded defeat after Origin announced a coal seam liquefied natural gas joint venture with US energy giant ConocoPhillips valued at 9.6 billion Australian dollars ($7.9 billion). BG said the price for that investment indicated a takeover of Origin would be too expensive.

"The price implied by this newly announced joint venture is higher than BG Group is able to justify," said BG Group chief executive Frank Chapman in a statement to the London Stock Exchange. "We have therefore decided not to extend or amend our offer, which we expect will now lapse."

BG shares rose 1.4 percent to 1,108 pence ($19.56) amid generally rising shares after the announcement.

BG had wanted Origin's gas resources in eastern Australia to feed a liquefied natural gas plant it is planning to build in Queensland.