(Reuters) - U.S.-based Public Storage PSA.N emerged on Friday as the likely buyer of Australia's largest self-storage operator National Storage REIT NSR.AX with its current A$1.89 billion ($1.25 billion) offer, after two rivals dropped out of the race.

Warburg Pincus had pulled out of the contest, National Storage said on Friday, a day after China’s Gaw Capital Partners’ also withdrew. Both private equity firms had offered A$2.20 for the Brisbane-based firm.

Public Storage offered A$2.40 a share. All three parties had access to due diligence.

Shares of National Storage fell as much as 6%, outpacing broader market losses of about 3%.

National Storage said Warburg Pincus reserved its right to revisit its decision.

Public Storage is still looking at National Storage’s books, the Australian company said, adding that investors should take no action at this point.

Gaw Capital’s approach was made public last month, while offers by Warburg Pincus and Public Storage were disclosed this month.