Fortescue Metals Group Limited
(ASX:FMG) has abandoned a proposed deal which would have seen the iron ore miner move into the oil and gas sector through buying an 18 per cent stake in Oil Basins Limited
(ASX:OBL).
The two companies announced the $4.2 million non-binding agreement in November 2012 which was expected to be finalised within five business days.
The deal would have seen Fortescue purchase 120 million Oil Basins shares at 3.5 cents per share and be issued up to 146 million options.
Oil Basins announced yesterday discussions on the letter of intent has been terminated by Fortescue but that Fortescue remains interested in a direct acquisition of part of the Derby Block should it be granted to Oil Basins by the state government.
Fortescue Metals Group reported a net profit of $1.5 billion in the 2012 financial year.
