BHP launches hostile takeover bid of Potash Corp.

Takeover would be biggest in Canadian history

Anglo-Australian mining giant BHP Billiton has launched a $40 billion hostile takeover bid of the Canadian firm Potash Corp, the world’s leading miner of potash. If BHP succeeds, the takeover would be the biggest in Canadian history. BHP’s initial offer was rejected, with Potash Corp. calling it “grossly inadequate” and saying it “substantially undervalues” the company. The latest offer comes as demand for fertilizer is expected to increase with the rising consumption of meat in emerging markets. In a statement, BHP said, “The acquisition will accelerate BHP Billiton’s entry into the fertiliser industry and is consistent with the company’s strategy of becoming a leading global miner of potash.”

BBC News

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