BHP Abandons Potash Pursuit
BHP Billiton has withdrawn its $38.6 billion offer for PotashCorp, putting an end to one of the biggest and most-contentious takeover battles in recent years.
The Anglo-Australian miner said it couldn’t satisfy conditions that Canada wanted to impose on the proposed acquisition, despite having made concessions that were “unparalleled in substance, scope and duration.”
BHP declined to specify what Canada’s conditions were, but indicated that they would likely “have conflicted with BHP Billiton’s business strategy and been counter to creating shareholder value.”
The outcome was yet another rebuke of BHP Chief Executive Marius Kloppers, who has pushed BHP to pursue three big international deals or joint ventures since 2007, each of which has failed.
“We remain committed to Canada, and we plan to develop a significant presence in the potash industry in Saskatchewan,” said Mr. Kloppers, in a statement.
(Source: Wall Street Journal)