Xstrata Won't Make Offer for Lonmin

Xstrata cites difficult credit conditions in its decision to not make an offer for Lonmin.
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, the giant Anglo-Swiss mining company, Wednesday said it has no intention to make an offer for platinum producer


, citing difficult credit conditions.

Xstrata's potential hostile offer for Lonmin PLC, the world's third-largest platinum producer, has been valued at between $9 billion to $10 billion. Xstrata in August proposed to acquire Lonmin for about 33 British pounds a share. But Lonmin rejected the offer, saying the offer undervalued the company's assets.

"The current lack of clarity and certainty regarding the future availability of credit introduces significant risks into the financing package available to Xstrata," said a statement from Xstrata CEO Mick Davis on Wednesday.

Xstrata needed to formalize its offer for Lonmin by Thursday or would have to walk away for six months, according to the U.K. takeover panel.


BHP Billiton's

(BHP) - Get Report

bid of almost $120 billion for

Rio Tinto


has received approval from competition authorities in Australia.