Apple rules out Imagination Technologies takeover "at this time" after holding talks with UK chip design company

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Apple has confirmed it was in discussions with Imagination over a takeover (Source: Getty)

Apple has decided not to go ahead with an offer for Imagination Technologies after holding talks with the company over a potential takeover.

The US technology giant said in a statement: "From time to time, Apple talks with companies about potential acquisitions.

"We had some discussions with Imagination, but we do not plan to make an offer for the company at this time."

Read moreApple in "advanced talks" to buy Imagination Technologies

This morning, the share price of Imagination rocketed following reports Apple was in "advanced talks" with the UK company.

Initially, both Apple and Imagination declined to comment on the story, which was first reported by Ars Technica.

Apple is already an Imagination shareholder. In 2008, it announced it had acquired a 3.6 per cent stake in the company.

Currently, Apple owns around 8.5 per cent of Imagination shares.

Imagination also already counts Apple among its customers, with the company creating chips for iPhones.

In 2008, Apple acquired chip maker PA Semi for $278m.

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Last week, Imagination announced it was cutting a further 200 jobs from its global workforce as part of a restructuring to save £12.5m by April 2017.

This came after Imagination's chief executive, Sir Hossein Yassaie, announced his departure in February. Yassaie had been with Imagination since 1992.

In December 2015, the company issued a profit warning profit warning due to weak smartphone sales in the first half of the year, the stagnating PC market and a glut of hardware in China.