K+S rejects fresh takeover bid from PotashCorp

21 July 2015 (Last Updated July 21st, 2015 18:30)

German salt and fertiliser group K+S has refused the latest takeover bid from Canadian mining company Potash Corporation of Saskatchewan (PotashCorp).

German salt and fertiliser group K+S has refused the latest takeover bid from Canadian mining company Potash Corporation of Saskatchewan (PotashCorp).

Earlier this month, PotashCorp's $8.65bn bid was rejected by K+S, claiming that the value was too low.

Reuters quoted a K+S spokesman saying that PotashCorp chief executive Jochen Tilk gave documents related to the company's plans to preserve jobs after the acquisition to Volker Bouffier, the state premier of the German regional state of Hesse.

"We've looked into these statements and concluded that they contain nothing substantial beyond what we had already been given in writing."

PotashCorp also handed over the documents to K+S.

A K+S spokesman said: "We've looked into these statements and concluded that they contain nothing substantial beyond what we had already been given in writing. That's why we still see no basis for talks."

According to K+S, the bidding company has cost-effective idle capacity in Canada and due to this about 40% of its operations in Germany were at risk.

The original proposal was made by PotashCorp in June this year.

PotashCorp said in a statement: "There is no certainty that any offer will ultimately be made or as to the terms on which such an offer might be made.

"PotashCorp does not intend to make any additional comments on this matter at this time unless and until it is appropriate to do so, or a formal agreement has been reached."