Mineral Resources shares spiked on the news, closing Thursday 26.6% higher at A$15.76.
Mineral Resources Mining News
The company's withdrawal means all eyes are now on Fortescue, which still has a 19.9%-stake in Atlas and has not yet disclosed whether it plans to launch a rival bid or sell its holding into Hancock’s offer.
The offer from Australian billionaire Gina Rinehart's Hancock Prospecting values Atlas shares at 17% more than price reached at Friday close.
Move comes a day after Fortescue Metals said it had built a stake in Atlas large enough to block a takeover.
Mining services provider Mineral Resources Ltd on Tuesday said it was looking to sell a minority stake in its Wodgina Lithium mine in the west of Australia.
The decision is final and without appeal.
Mineral Resources not surprised by Environment Minister's rejection of its Western Australia project
"This position has remained unchanged for a number of years," the miner said.