Uruguay-based Union Agriculture Group (UAG) has pulled out of the bidding for New Zealand Farm Systems Uruguay(NZFSU).
UAG company chairman Juan Sartori said the company had decided against making a bid above the current offer from Olam International of 70c per share.
"We are a conservative company and we currently have other opportunities where we can apply our funds and resources in Uruguay at better terms," Mr Sartori said today.
"While we believe NZFSU was potentially very good for UAG and that we could make it a successful operation, the opportunity does not look so good for us at that price."
UAG remained interested in working with New Zealand or other international businesses in Uruguay or elsewhere in South America to continue growing UAG into a leading and successful agricultural company.
Olam lifted its takeover offer to 70c on Tuesday, from the 55c it was previously. UAG had notified its intention to make a cash offer at 60c a share early last week.