BHP Billiton Abandonment $40 Billion Acquisition Of Canadian Potash Fertilizer Business Plan

Beijing time November 15th morning news, the world's largest mining enterprise BHP Billiton The company announced that because of the opposition from the Canadian government, the company will give up the $40 billion acquisition of Potash Corp. of Saskatchewan Inc. for potash producers. At the same time, BHP Billiton also announced the resumption of activation of its $4 billion 200 million. Stock repurchase project This is part of its entire $13 billion stock Buyback program.

BHP Billiton, in a statement submitted this week to the Australian Stock Exchange, said that the company was unable to meet the relevant provisions stipulated in the Investment Canada Act, so it finally decided to abandon the acquisition plan. In November 3rd, the Canadian government announced its veto of BHP Billiton's takeover plan, which stipulates that the latter has 30 days to lodge a complaint. The Canadian government said earlier that the sale of Potash Corp. to BHP Billiton would not bring net benefits to Canada. At present, Potash Corp. is the largest fertilizer producer in the world.

Gao Ruisi, chief executive of BHP Billiton, said in a statement: "we are still committed to the development of Canadian business, and we plan to increase our Marius Kloppers. Canadian potash industry Input. " In September this year, Gao resi has raised $45 billion in loans to complete the acquisition of Potash Corp., but in fact, the deal has been challenged by politicians and investors since it was put forward. BHP Billiton said the failure of the takeover plan would cost the company $350 million in transaction costs.

Pangana Capital fund manager Schroeders (Tim Schroeders) said: "because the scale of BHP is so huge, it is difficult to negotiate with the Canadian government and face many regulatory difficulties." Schroeders said that BHP Billiton is ambitious in terms of the size of the acquisition.

"Regrettably, despite the fact that all requests for clear antitrust have been accepted by the Canadian government, we can not meet the requirements stipulated in the laws of the state," he said in a statement. Therefore, under the comprehensive balance, we have to abandon the acquisition of Potash Corp.. "

BHP Billiton said that the Ottawa government has made many concessions to us, which have far exceeded the benefits we have provided to the Canadian government, which has reached US $1 billion.

BHP Billiton said: "BHP Billiton believes that the Canadian Ministry of industry will also propose more unreasonable demands than the transaction itself, which will conflict with BHP's business strategy, and contrary to shareholders' interests."

Schroeders pointed out that BHP Billiton's repurchase scale may not be as large as some people hoped, and the cancellation of the Canadian Potash Corp might indicate that BHP was unable to persuade the Canadian government in the original deadline, and the company did not advance the second set of options or room for maneuver in the transaction.

Canadian industry minister Tony Clement (TONY CLEMENT) said there was no specific link between the review process and BHP trading. He acknowledged that some stalemate existed in BHP Billiton was controversial, but still said "welcoming foreign investment". Tony Clement said: "my government believes that there are many ways to improve the assessment process."