Potash Officially Rejects BHP Billiton Offer

By Antonio Perez
Antonio Perez
Antonio Perez
August 23, 2010 Updated: October 1, 2015

PotashCorp officially rejected a $40 billion takeover bid from BHP Billiton Ltd. on Monday (William West/AFP/Getty Images)
PotashCorp officially rejected a $40 billion takeover bid from BHP Billiton Ltd. on Monday (William West/AFP/Getty Images)
PotashCorp, a fertilizer company based in Saskatchewan, Canada, on Monday formally rejected a $40 billion takeover bid from Australia’s BHP Billiton Ltd.

The company’s board “unanimously recommends that PotashCorp shareholders reject the BHP Billiton offer and not tender their shares,” according to a statement from Potash.

According to Bloomberg sources, Potash may have other suitors—China’s Sinochem Group and Brazil’s Vale SA also made inquiries on purchasing a stake in the company.

China, the world’s biggest emerging-market economy, would benefit from controlling a key commodity supplier, according to analysts. BHP is the world’s biggest mining company, while Vale is one of the world’s biggest exporters of iron ore.