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.
