PotashCorp Withdraws $8.8 Billion Offer for German Rival K+S

By Joanne Chiu 

Potash Corporation of Saskatchewan Inc. has dropped a takeover bid for rival K+S AG, citing challenging market conditions and a lack of engagement by K+S management.

The Canadian company, which is the world's largest integrated fertilizer and related industrial and feed products company by capacity, this year offered 41 euros ($45.98) a share for the German salt and fertilizer company, valuing K+S at EUR7.9 billion ($8.8 billion).

In August, K+S said Potash's offer undervalued the company and its projects. K+S also said that a takeover could cost jobs, a warning that won management both labor and political support, if not the backing of shareholders.

Potash's withdrawal comes amid challenging macroeconomic conditions that have sent global potash-related commodity stocks sinking 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," said PotashCorp President and CEO Jochen Tilk.

Write to Joanne Chiu at [e-mail]

Access Investor Kit for "K+S AG"

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=DE000KSAG888

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 05, 2015 00:25 ET (04:25 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.