PotashCorp Withdraws $8.7 Billion K+S Proposal

Potash Corporation of Saskatchewan (TSX:POT,NYSE:POT) announced that it has withdrawn it proposal to negotiate with K+S Aktiengesellschaft (OTCMKTS:KPLUY).
As quoted in the press release:

The private proposal of €41 per share on May 31, 2015 sought to bring together complementary assets that would have enhanced financial resources and allowed the combined company and its stakeholders to benefit from greater diversification across geographies and products. It reflected a 59 percent premium to the volume weighted average of K+S’ share price during the prior 12 months and included comprehensive, credible commitments to K+S’ employees, unions and communities.

Jochen Tilk, president and CEO of PotashCorp, commented:

Our proposal reflected full and fair value, and was predicated on a collaborative process with access to customary due diligence. Since that time, challenging macroeconomic conditions have contributed to a significant decline of global commodity and equity markets, with potash peer stocks down almost 40 percent*. 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.

Click here to read the full Potash Corporation of Saskatchewan (TSX:POT,NYSE:POT) press release.