BHP Billiton Ltd’s
(ASX:BHP) US$40 billion hostile bid for Canada’s PotashCorp has been blocked by the country’s government, leaving the global miner 30 days to persuade the government otherwise.
Canada's Industry Minister Tony Clement says he is not satisfied that the proposed takeover of Potash Corporation, from the Canadian province Saskatchewan, is likely to be of net benefit to the country.
Adding that, BHP now has 30 days to make any additional representations and submit any undertakings, after which Mr Clement will make a final decision.
PotashCorp, the world's biggest fertiliser maker, had earlier rejected BHP’s offer of $US130 per share as inadequate.
Under the country’s Investment Canada Act, any proposed takeover must show that it will benefit the country before it is approved.
Mr Clement has affirmed Canada will continue to maintain an open climate for investment.
In the 2010 financial year BHP Billiton booked a net profit of $15.26 billion.
