Diesel loader

Canadian mining company Potash Corporation of Saskatchewan (PotashCorp) has withdrawn its proposal to negotiate a $8.65bn deal with German salt and fertiliser group K+S.

PotashCorp’s proposal of €41 per share made on 31 May sought to bring together complementary assets that would have improved financial resources.

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The proposal would also have allowed the combined entity and its stakeholders to benefit from diversification across geographies and products.

According to PotashCorp, the proposal reflected a 59% premium to the volume weighted average of the share price of the German company during the prior 12 months.

"These challenging macroeconomic conditions have contributed to a significant decline of global commodity and equity markets, with potash peer stocks down almost 40%."

PotashCorp president and CEO Jochen Tilk said: "Our proposal reflected full and fair value, and was predicated on a collaborative process with access to customary due diligence.

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"Since that time, challenging macroeconomic conditions have contributed to a significant decline of global commodity and equity markets, with potash peer stocks down almost 40%.

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"In light of these 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."

K+S refused takeover bid from PotashCorp in July claiming that the value was too low.

The company is developing a $2.64bn mine in the western Canadian province of Saskatchewan, which is expected to produce around 2.9Mt of potash annually by 2023.

Image: 17t diesel loader in K+S potash mine. Photo: courtesy of K+S Aktiengesellschaft.