Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, October 5, 2015

Potash Corp withdraws $8.9 billion bid for German rival K+S, (NYSE: POT)

Potash Corp of Saskatchewan said on Monday it had withdrawn its 7.9-billion-euro ($8.9 billion) offer for German rival K+S , citing a decline in global commodity and equity markets and a lack of engagement by K+S management.Shares in K+S closed down 25 percent after the Canadian company announced the decision, wiping almost 1.5 billion euros off its market value.An acquisition of K+S would have given Potash Corp an opportunity to realise savings from selling potash within North America from its own Western Canada mines and from K+S's Legacy mine, which is under construction in the region. However, senior K+S executives dismissed the Canadian firm's 41-euro-per-share cash bid - which represented a 59 percent premium to the volume-weighted average of K+S's share price during the previous 12 months - as too low and refused to negotiate.

Potash Corporation of Saskatchewan Inc is a fertilizer company. Shares of POT traded higher by 2.1% or $0.43/share to $20.93. In the past year, the shares have traded as low as $19.47 and as high as $37.60. On average, 5476420 shares of POT exchange hands on a given day and today's volume is recorded at 8248468.