BHP Billiton has withdrawn its bid for the Potash Corp. of Saskatchewan.
The Australian company had 30 days to revamp its bid after federal industry minister Tony Clement denied its hostile takeover attempt Nov. 3, but the company issued a news release Nov. 14 saying it would not pursue the purchase.
It said the offer would have resulted in significant net benefit to Canada, despite concerns to the contrary by the Saskatchewan government.
“The proposed undertakings offered by BHP Billiton in a signed, written submission to the minister of industry were unparalleled in substance, scope and duration, reflecting the importance of potash to Canada and Saskatchewan,” the statement said.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
“The company had offered to commit to legally binding undertakings that would have, among other things, increased employment, guaranteed investment and established the company’s global potash headquarters in Saskatoon.”
BHP said it will continue to work on developing a new potash mine at Jansen, Sask.
The $38.6 billion bid for Potash Corp. cost BHP $350 million US.
Clement also issued a statement thanking BHP for its “good faith and integrity” during the application process.
The Investment Canada Act requires that potential foreign purchases worth more than $299 million be reviewed.
“The ICA is in place to ensure that major foreign investments in our economy are likely to be of net benefit to Canada,” Clement said.
“Our government recognizes, however, that there may be ways to improve the review process.”
