The Australian mining giant BHP Billiton has announced that it has withdrawn its $38.6 billion offer to acquire all of the issued and outstanding common shares of Canadian fertilizer group Potash Corporation of Saskatchewan Inc., saying it could not meet Canada's stringent demands.
"Unfortunately, despite having received all required anti-trust clearances for the offer, we have not been able to obtain clearance under the Investment Canada Act and have accordingly decided to withdraw the offer. We remain committed to Canada and we plan to develop a significant presence in the potash industry in Saskatchewan. As part of those plans we will continue to progress our Jansen Project and other development opportunities," BHP Billiton's CEO Marius Kloppers said.
The Canadian government rebuffed BHP's approach two weeks ago and set a 30-day deadline to improve the offer or make further supporting arguments.
BHP Billiton also said that total Potash Corporation-related transaction costs of approximately $350 million will be recognized as an exceptional item in the December 2010 interim accounts.