Potash Corp. Ends Pursuit of German Rival K+S
October 05 2015 - 1:30AM
Dow Jones News
Potash Corp. of Saskatchewan Inc. has dropped a takeover bid for
rival K+S AG, citing challenging market conditions and a lack of
engagement by K+S management.
The Canadian company, which is the world's largest integrated
fertilizer and related industrial and feed products company by
capacity, this year offered 41 euros ($45.98) a share for the
German salt and fertilizer company, valuing K+S at €7.9 billion
($8.8 billion).
In August, K+S said Potash Corp.'s offer undervalued the company
and its projects. K+S also said that a takeover could cost jobs, a
warning that won management both labor and political support, if
not the backing of shareholders.
Potash Corp.'s withdrawal comes amid challenging macroeconomic
conditions that have sent global potash-related commodity stocks
sinking almost 40%. "In light of these market conditions and a lack
of engagement by K+S management, we have concluded that continued
pursuit of a combination is no longer in the best interests of our
shareholders," said Potash Corp. President and CEO Jochen Tilk.
Write to Joanne Chiu at joanne.chiu@wsj.com
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(END) Dow Jones Newswires
October 05, 2015 01:15 ET (05:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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