TOKYO, March 3 (Reuters) - A Japanese fund backed by veteran investor Yoshiaki Murakami has cancelled its offer for energy and environment firm Japan Asia Group (JAG), the fund said on Wednesday.

It said its decision followed JAG's refusal to cooperate with its efforts to carry out due diligence and instead decided on a large, special dividend. (Reporting by Ritsuko Ando; Editing by Clarence Fernandez)