Singapore-based Sembawang Engineers and Constructors has pulled its offer to acquire Macmahon's construction division for $38 million.

The move follows Macmahon's rejection of a 24-hour deadline set by Sembawang for the offer to be accepted.

Sembawang last week offered to buy the division outright for $38 million or along similar terms as Leighton's $20 million rival offer for the company's major projects but with a $5 million sweetener.

Macmahon has always insisted it had already entered a binding, exclusive sales agreement with Leighton, also a major shareholder of the company, which prevented it from entering discussions with Sembawang about its offer. It also noted the Sembawang's was "unsolicited, non-binding, incomplete and highly conditional".

Macamhon said it would make a full statement on the matter shortly.