The Canadian government has blocked BHP Billiton's $US40 billion bid for Potash Corp of Saskatchewan.Canada's minister of industry Tony Clement said the takeover would not be of benefit to Canada.Melbourne-based BHP, the world's biggest mining company, ha
The Canadian government has blocked BHP Billiton’s $US40 billion bid for Potash Corp of Saskatchewan.
Canada’s minister of industry Tony Clement said the takeover would not be of benefit to Canada.
Melbourne-based BHP, the world’s biggest mining company, has 30 days to appeal.
“BHP Billiton is disappointed, but continues to believe that the offer is of net benefit to Saskatchewan, New Brunswick and Canada,” the company said.
Saskatchewan has the world’s largest reserves of potash, a form of potassium farmers use to boost crop yields. Potash Corp is the world’s largest maker of potash by capacity.
An unsuccessful takeover of Potash would represent BHP’s third major failure on the acquisition front in two years.
Last month, the company’s plans to tie up with Rio Tinto in Western Australia failed to come to fruition, due to mounting pressure from the world’s anti-monopoly regulators.
This followed an unsuccessful takeover bid for Rio in 2008.
BHP has in the past said it would walk way from Potash if the stakes got too high.
The company's shares last traded in Australia on Thursday at $A43.72, up $A1.09.
