The West Australian reported that China's Wah Nam International said that it will allow its offer for iron ore miner FerrAus to lapse, after being trumped by a deal between the target and Atlas Iron.

Wah Nam said in a statement that it would rely on the conditions in its bidder's statement of December 6th 2010, to regard its offer as having been defeated.

It said “Accordingly, the takeover offer will lapse at 4PM on July 15, when all acceptances or the contracts resulting from acceptances of the offer will become void.”

FerrAus said it had agreed to a takeover by Atlas, to create AUD 3 billion company with the combination of the two miners operations in the Pilbara. Both sets of directors have recommended that shareholders approve the deal.

FerrAus and Atlas have proposed a two step deal in which Atlas would pay about AUD 238 million. FerrAus will first combine Atlas's south-east Pilbara iron ore assets with its own as Atlas pays AUD 24.3 million for a 38 per cent stake in the smaller miner. Atlas would then take over FerrAus for a further AUD 214 million in shares.

(Sourced from thewest.com.au)