The ABI and BBA has called off its plans to merge the two organisations.
In a statement, the ABI said the "decision follows consultation with a wide range of member companies and a careful consideration of the desirability and practicality of setting up such a body."
The ABI added: "In view of the number and scale of the important issues currently facing both industries, it has been agreed that it would be more sensible for the two Associations to work closely together on matters of common interest, rather than divert resources into a complex and time-consuming structural change."
