BHP Billiton Ltd
(ASX:BHP) has pulled out of its $40 billion bid for Potash Corporation and launched a share buyback to return $US4.2 billion to its shareholders.
The global miners exit from its planned hostile takeover comes following the world’s largest fertilizer company PotashCorp rejecting BHP’s offer of $US130 per share as inadequate, after which Canadian regulators blocked the proposed deal earlier this month on grounds that is not likely to be of net benefit to the country.
Ahead of its annual general meeting tomorrow, BHP has disclosed that it has already spent $US350 million for its bid for PotashCorp, which will be recognised as an exceptional item in its interim accounts this December.
BHP’s inability to acquire PotashCorp represents the third failed attempt at securing a major acquisition under the helm of CEO Marius Kloppers.
Speculation is mounting that Woodside Petroleum Ltd (ASX:WPL) could now be in his sights, after Shell last week sold almost a third of its stake in Australia’s largest oil and gas producer.
BHP will now resume the remaining $US4.2 billion part of its earlier suspended $US12.0 billion buy-back program.
BHP Billiton improved its profit in fiscal 2010, rising from a profit of $7.8 billion last year to $15.26 billion in the year to 30 June 2010.
