Independence Group (ASX:IGO) has given up on its pursuit of smaller target Panoramic Resources (ASX:PAN) after “a number” of defeating conditions were breached.

The $3.7 billion Independence told shareholders today that it planned to let its $312m off-market takeover bid for Panoramic lapse.

Independence launched the bid back in early November because it was keen on picking up Panoramic’s producing Savannah nickel mine in Western Australia’s East Kimberley region.

The offer was for one IGO share for every 13 PAN shares, or about 47.6c per PAN share.

This was a 51 per cent premium over the one-month volume weighted average price – the average price that the stock has traded over a month based on both volume and price.

READ: Independence makes a move on Panoramic with $312m takeover bid

The offer was due to close on at 7pm (Sydney time) on January 17, 2020.

But a number of subsequent announcements by Panoramic has prompted Independence to rethink its pursuit of the $265m nickel miner.

“Any M&A must deliver a return to our shareholders,” Independence managing director and CEO Peter Bradford told the market this morning.

“At announcement, IGO’s off market takeover bid for Panoramic, which was based on the public disclosure of the 2017 Savannah project feasibility study, represented a potential “win win” for both IGO and Panoramic shareholders.

“The subsequent disclosures by Panoramic, including the operational update and need for additional funding have significantly eroded the value proposition for IGO and its shareholders.

“Consequently, we have decided to allow the offer for Panoramic to lapse. This decision reflects our disciplined approach to M&A.”

Independence has so far only managed to amass a 4.85 per cent stake in Panoramic, amounting to about 32.4 million shares.

The Panoramic share price is set to take a nearly 14 per cent hit at market open.