BHP has abandoned its US$45 billion bid for Canadian fertiliser company, Potash Corporation of Saskatchewan.
The miner stated that “the condition of (our) offer relating to receipt of a net benefit determination by the Minister of Industry under the Investment Canada Act cannot be satisfied, and accordingly, the offer has been withdrawn.”
However, despite this, BHP still believes the offer would have resulted in a net benefit for Canada, stating that it would have increased investment and employment in the region while at the same time it would have forgone tax benefits.
BHP chief executive Marius Kloppers voiced his disappointment at having to drop the offer.
“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.”
He went on to say that BHP remains committed to Canada, and will continue progress on its Jansen Project.