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Canada's Potash Corp., the world's largest fertiliser producer, rejected an unsolicited bid from Australian mining giant BHP Billiton. Pictured here is a Potash plant in Saskatoon, Saskatchewan
Canada has rejected BHP Billiton's $39bn bid for PotashCorp, dealing a potentially fatal blow to the Australian miner's 10-week pursuit of the Saskatchewan-based fertiliser producer. Tony Clement, Canada's industry minister, said: "At this time, I am not satisfied that the proposed transaction is likely to be of net benefit to Canada [as required by Ottawa's foreign investment law]."
However, Mr Clement appeared to keep the door ajar for BHP, noting that under the legislation "BHP Billiton has 30 days to make any additional representations and submit any undertakings".
BHP said it was "disappointed" with the decision but would continue to co-operate with the Canadian government and would review its options.
Mr Clement did not elaborate on the reasons for his decision, but said they would be given at the end of the 30 days.
He added: "Canada has a long-standing reputation for welcoming foreign investment. The government of Canada remains committed to maintaining an open climate for investment."
Canada has only once before blocked a foreign takeover, rejecting Alliant Techsystems' bid in 2008 for MacDonald Dettwiler on national security grounds.
Read More:http://edition.cnn.com/2010/BUSINESS/11/03/potash.bhp.takeover.ft/index.html