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Business deals

Non-Chinese rare-earth miner Lynas becomes too pricey to buy

Australia's Wesfarmers abandons $1bn bid after trade war boosts share price

Lynas, which operates this rare-earth facility in Malaysia, saw its stock price surge due to the trade war. (Photo courtesy of Lynas). 

SYDNEY -- Australian conglomerate Wesfarmers has dropped its bid to acquire compatriot and rare-earth metals miner Lynas, it said, after U.S.-China trade tensions surrounding the elements drove up the target's value.

Wesfarmers said Thursday it has been "unable to progress" its March 26 proposal to buy Lynas for 2.25 Australian dollars per share -- about AU$1.5 billion ($1.02 billion) in total -- and "does not intend to pursue it further." The offer gave a premium over the share price of AU$1.55 the day before the offer.

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