Shares of Potash Corp are down sharply in after-hours trading as Canada announced it will block BHP Biliton's $39 billion dollar hostile takeover bid for Potash Corp. It was said that the deal represented no meaningful benefit to Canada.
BHP Biliton has been given 30 days to improve their deal to better satisfy the Canadian government. The company said it will use the time wisely to convince the government that the deal makes sense.
This deal would have been the largest of its kind in Canada's history. Out of over 1,600 foreign takeover applications since 1985, this is only the second to be rejected by Ottawa. Andy Kibbens (Co-CEO of The Markets Are Open) said "It's about time. Canada has let too many invaluable assets leave Canadian hands. We must stick to our guns and be strong not to let foreigners take all of Canada's extremely valuable resource companies".
Potash corp (NYSE: POT) is Canada's largest integrated fertilizer and related products company. BHP Biliton is the largest natural resource company in the world.
