Iron-ore junior Fenix Resources has opted not to counter a rival bid for CZR Resources, stepping back from a potential bidding war after its takeover target's board deemed a competing offer from the Robe River Iron Associates Joint Venture (JV) a superior proposal.

The ASX-listed company said on Thursday it would not exercise its right to match the Robe River JV’s A$75-million cash bid for CZR’s Robe River tenements, effectively relinquishing its opportunity to revise or enhance its all-scrip takeover offer for CZR.

“Fenix’s board has carefully considered the strategic rationale for the takeover offer and the company’s commitment to a disciplined approach to growth transactions and the allocation of capital,” the company, headed by John Welborn, said in a statement. 

“Recognising the exciting growth opportunities available within Fenix’s existing Mid-West footprint, the Fenix board has notified CZR of the decision not to exercise the matching right.”

Fenix launched its bid to acquire up to 100% of CZR in February via an all-scrip, off-market offer. The deal had an initial close of April 8, which was later extended to April 29. As of April 16, Fenix had accumulated a 14.99% stake in CZR.

However, the strategic landscape shifted earlier this month when CZR revealed it had received a binding $75-million offer from the Robe River Iron Associates JV, comprising subsidiaries of mining heavyweights Rio Tinto, Mitsui & Co, and Nippon Steel. CZR’s board deemed the proposal a “superior proposal” under the terms of its bid implementation agreement with Fenix.

Under that agreement, Fenix had until 17:00 AWST on April 17 to match or better the JV’s offer.

Despite stepping back from the CZR deal, Fenix reiterated its confidence in its core growth plans, including ramping up production at its Iron Ridge and Shine mines, as well as the development of its new Beebyn-W11 project. The company remains on track to hit its production target of 4-million tonnes a year in 2025.

The offer for CZR remains open until 19:00 AEST on April 29. However, Fenix cautioned that if the offer conditions are not met or waived, all acceptances would be voided.