The decision was made last week, he said.

“The decision not to participate has been carefully considered following detailed evaluation by an experienced team,” he said.

“We have looked at this opportunity closely over the eight months since Griffin entered administration but in the end, we just felt that the positive aspects to a deal were outweighed by a range of business integration issues.”

The prospect was tempting and a lot of Wesfarmers people had put in a lot of work. But a range of issues made the company withdraw, Mr Warrand said.

Despite Wesfarmers Premier Coal’s reputation as a good employer and corporate citizen, the news might be a relief in certain quarters.

Combining Griffin and Premier Coal would inevitably have led to many job losses.

State Premier and Treasurer Colin Barnett would also not have relished the prospect of a monopoly supplier to the state’s coal-fired power stations.

There were also likely to be issues with the Australian Competition and Consumer Commission, which has a role in promoting competition.

News of Wesfarmers’ withdrawal came of a looming creditors’ meeting in Perth.

Although he had earlier said he expected a high attrition rate, Brian McMaster of the administrators KordaMentha declined to comment on who else might have dropped out, how many were still bidding and from where there was still most interest.

It has been known for some time that Griffin owner Ric Stowe was hoping to regain control of the company.

The Australian Financial Review reported recently that he had managed to find the finance to make a bid for at least part of the business.