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Johannesburg - Diversified miner Exxaro Resources [JSE:EXX] said on Thursday it would not increase its offer for Australia-listed Territory Resources after its bid was trumped by Noble Group.
Exxaro launched its offer last month as part of a plan to buy several iron ore assets and eventually produce 10 million tonnes of the steel-making ingredient a year.
"Exxaro has a disciplined approach to growth and acquisitions, and the company will not bid above what we see as fair value for the assets," Ernst Venter, Exxaro's manager for business growth, said in a statement.
"Exxaro is focused on further diversifying and will continue to review a number of other potential opportunities in both iron ore and Australia."
Exxaro's offer lapses on July 4.
Analysts have said Exxaro's bid, pitched at a 64% premium to Territory's share price at the time, was expensive given the short three- to five-year life span of Territory's mine in Australia's Northern Territory.
Exxaro launched its offer last month as part of a plan to buy several iron ore assets and eventually produce 10 million tonnes of the steel-making ingredient a year.
"Exxaro has a disciplined approach to growth and acquisitions, and the company will not bid above what we see as fair value for the assets," Ernst Venter, Exxaro's manager for business growth, said in a statement.
"Exxaro is focused on further diversifying and will continue to review a number of other potential opportunities in both iron ore and Australia."
Exxaro's offer lapses on July 4.
Analysts have said Exxaro's bid, pitched at a 64% premium to Territory's share price at the time, was expensive given the short three- to five-year life span of Territory's mine in Australia's Northern Territory.
