In a statement, Weir Group said its offer to acquire Ludowici for $A10 per share had lapsed and it had withdrawn from bidding for Ludowici.

“Whilst Ludowici represented an attractive opportunity to expand our market-leading Australian business, our focus in any acquisition is to create value for Weir shareholders,” Weir Group executive Keith Cochrane said.

“A materially higher offer would not have met the rigorous financial criteria which will apply to all acquisitions.”

The news comes after the Australian Takeovers Panel knocked back appeals from the Weir Group and rival bidder FLSmidth, allowing FLSmidth to increase its bid from $7.20 per share to $11/share.

The panel declined to conduct proceedings on an application by Weir, lodged on February 29, appealing its decision to allow FLSmidth to proceed with its sweetened bid for Ludowici.

The panel also declined to hear an application by FLSmidth requesting a review of orders for it to pay out-of-pocket expenses to Ludowici shareholders following “unacceptable circumstances” in FLSmidth’s handling of media statements about its offer.

However, the panel comprising president Graham Bradley, Norman O’Bryan and Mike Roche said the “stay on the orders” requiring FLSmidth “to pay compensation to qualifying Ludowici shareholders has ended”

Weir Group previously argued that in a Reuters article on January 23, FLSmidth said its $7.20 per share bid was its final offer.

It said FLSmidth should not be allowed to raise its offer beyond $7.20/share.

Weir Group slapped a $10 bid on the table which was then matched by FLSmidth.

FLSmidth then trumped the rival bid with an $11/share offer.

In a separate statement, Ludowici said the news of Weir pulling its bid didn’t impact the FLSmidth proposal.

Subject to the satisfaction of conditions, the board expects the FLSmidth transaction to be completed in early June.

This article first appeared in ILN's sister publication ConstructionIndustryNews.net.