Canada has blocked BHP Billiton’s US$40bn takeover bid of PotashCorp stating the proposed deal may not provide financial benefits to the nation.

The Canadian Government, however, has given BHP Billiton 30 days to explain how it can help the country.

The government can block any deal valued at C$299m or above if a transaction does not provide a net benefit to the country under the Investment Canada Act.

PotashCorp issued a statement saying that it views BHP Billiton’s US$130 per share offer as “wholly inadequate” and believes the offer fails to reflect the value of the company’s premier position and its future growth prospects, reports