Tony Clements, Canadian Minister of Industry:
“I am not satisfied that the proposed transaction
is likely to be of net benefit to Canada”
BHP Billiton Plc has withdrawn its $39bn. offer to acquire Potash Corp. of Saskatchewan after the Canadian government declined to support the bid.
The Anglo-Australian miner said the failed bid would result in losses of $350m., largely related to the debt financing facility BHP agreed with banks.
The Canadian government moved to block the bid on 3 November 2010, saying BHP acquiring the world’s largest fertiliser minerals group would offer no benefit to the North American country’s economy.
BHP’s chief executive officer, Marius Kloppers, said: “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.”