PotashCorp of Saskatchewan Inc. is withdrawing its $8.6 billion takeover proposal of K+S.
For months, PotashCorp – the largest fertilizer producer in the world – has tried to meet with K+S to negotiate a takeover.
German-based K+S executives had said the company wasn’t opposed to a merger in principle, but rejected the billion dollar takeover proposal, arguing PotashCorp was placing too low of a value on the company.
“K+S rejected the unsolicited proposal of PotashCorp, because the price offered had not nearly reflected the fundamental value of the company and was not in the best interest of the company,” read a K+S press release sent out Monday. “In addition, the job and site commitments by PotashCorp included such far-reaching restrictions that commodity production would not have been secured in Germany.”
If successful, the takeover would have seen PotashCorp gain control of the K+S Legacy project in Saskatchewan, as well as other operations around the globe.
Full content: The Financial Times
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