Potash Corp of Saskatchewan said it had withdrawn its 7.9 billion euro ($8.9 billion) offer for German potash producer K+S, citing a decline in global commodity and equity markets and a lack of engagement by K+S management. The acquisition would have given Potash Corp an opportunity to realize savings from selling potash within North America from its own Western Canada mines jointly with potash from K+S's Legacy mine, which is under construction in the region.But senior K+S executives dismissed Potash Corp's bid as too low and refused to negotiate. Since Potash Corp made its offer to K+S privately at the end of May, shares of K+S peers have dropped around 40 percent amid concerns over weakening demand from China, the world's largest consumer of potash. "In light of these (challenging) market conditions and a lack of engagement by K+S management, we have concluded that continued pursuit of a combination is no longer in the best interests of our shareholders," Potash Corp Chief Executive Jochen Tilk said in a statement early on Monday.
Potash Corporation of Saskatchewan Inc is a fertilizer company. Shares of POT traded higher by 4.06% or $0.8/share to $20.50. 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 7111878.