Uruguay-based Union Agriculture Group (UAG) has pulled out of its planned takeover bid for New Zealand Farming Systems Uruguay.

UAG and Singapore-based Olam had exchanged competing bids for a majority stake in NZFSU, which rejected Olam’s initial 55c a share offer as too low.

NZ Farming Systems Uruguay share price has risen sharply following news a rival to Singapore’s Olam International takeover bid has entered the fray.

Yesterday Uruguay-based Union Agriculture Group increased the stakes with an offer of 60c a share against Olam’s 55c.

Another bidder has launched a takeover offer for NZ Farming Systems Uruguay (NZFSU) and has raised the stakes.

Uruguay-based Union Agriculture Group (UAG) has offered 60c a share – 5c more than Singapore-based Olam International.

Olam, which previously had a stake of 18.45% in NZFSU, has a commitment from PGG Wrightson that it will accept the offer for its 11.52% NZFSU holding provided Olam acquires at least 51% of the farm development company.