BHP Billiton will ditch its bid for Potash Corp of Saskatchewan if the stakes get too high, the company says.BHP, the world's biggest mining company, has a $US39 billion bid on the table to buy Potash, which has met with stiff opposition from Potash
BHP Billiton will ditch its bid for Potash Corp of Saskatchewan if the stakes get too high, the company says.
BHP, the world’s biggest mining company, has a $US39 billion bid on the table to buy Potash, which has met with stiff opposition from Potash itself and the Canadian province of Saskatchewan.
“Any acquisition or investment must create value for our shareholders,” chairman Jac Nasser told the annual meeting in London. “If shareholder value is not demonstrated, we will not proceed with the proposed acquisition,” he said.
If BHP fails with Potash, it will be its third failure to acquire a major business in as many years. It launched an unsuccessful takeover for Rio Tinto in 2008 and its proposed multi-billion dollar iron ore joint venture with Rio has just fallen over.
Potash, a mineral that is used to enhance crop yields, is mined in large quantities using traditional mining methods.
BHP, Australia’s biggest company by market capitalisation, is listed in Australia under BHP Billiton Ltd and under BHP Billiton Plc in London.
Australians own 96.05% of BHP Billiton Ltd. The company has just over 14,000 New Zealand shareholders, the second biggest shareholder grouping, by nationality.
BHP shares last traded in Australia at $A41.41, up 19Ac.
