US sporting goods firm Zumiez has pulled out of the race to buy Canadian action sport retailer West 49 Inc after saying the two companies failed to agree on the terms of the due diligence process.

The decision not to pursue the bid comes less than a week after Zumiez bettered a CAD99.0m (US$93.5m) offer tabled by Billabong International.

Zumiez had offered to pay "in excess" of the CAD1.30 per share agreed with Billabong on 30 June.

The move now paves the way for Billabong to proceed with its offer for West 49, which operates 138 stores and is already one of Billabong's retail partners in Canada.