Signet's UK sales have struggled
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Signet, which owns the H Samuel and Ernest Jones jewellery chains, says merger talks with a US rival are over.
Signet held "preliminary" talks with US firm Zale Corporation about a possible tie-up but these have now come to an end, the company confirmed.
The Signet group has 591 UK stores, and also has 1,246 outlets in the US under brands such as Kay Jewelers.
The US business - also including the Jared the Galleria of Jewelery chain - accounts for 80% of Signet's sales.
News that talks had ended emerged after the stock market had closed.
Before that, Signet's share price had closed up 2.75 pence, or 2.8%, at 98.75p.
Zale also got a lift, surging 13% to $27.02 in New York.
UK struggle
Zale is the largest speciality jewellery retailer in North America, and in addition to Zales Jewellers it also owns brands such as Bailey Banks & Biddle, and Mappins Jewellers.
It operates more than 2,300 stores in the US, Canada and Puerto Rico.
On Friday, Signet reported a 10% rise in pre-tax profits to £30.7m ($56.5m) for the three months to 29 April.
However, while its US business performed strongly, with total sales rising 18% over the period, sales were flat at its UK outlets.
Its UK business - which also owns the Leslie Davis brand - recorded an operating loss of £1.6m for the period after being hit by rising gold and silver prices, and by higher marketing costs.
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