Canadian mining company Potash Corporation of Saskatchewan (PotashCorp) has withdrawn its proposal to negotiate a $8.65bn deal with German salt and fertiliser group K+S.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