PERTH (miningweekly.com) – ASX-listed Wesfarmers has abandoned its A$1.5-billion takeover of rare earths miner Lynas, after failing to engage Lynas in talks.
Wesfarmers in March announced its conditional, non-binding indicative proposal for Lynas, under which shareholders were offered A$2.25 a share in cash.
The proposed offer was subject to a number of conditions, including due diligence investigations, the negotiation and execution of an implementation agreement, regulatory and shareholder approval, and Lynas securing its relevant operating licences in Malaysia.
Lynas this week confirmed the receipt of its Malaysian operating licence, which will be valid for an initial six-month period. The new licence included a number of conditions, including Lynas relocating its cracking and leaching activities offshore.
Lynas had previously said the company had taken the decision not to engage with Wesfarmers after evaluating the indicative and highly conditional offer.