PotashCorp of Saskatchewan is relinquishing it's attempt to merge with Germany based K+S AG which was tabled for $8.7 billion.
The fertilizer magnate is citing lack of cooperation and meandering commodity prices as reasons for backing out of the attempted proposal.
Word of the stoppage sent each company's stocks in opposite direction, PCS' gained 1.7 percent while K+S AG's was sent tumbling nearly 25 percent.
“Our proposal reflected full and fair value, and was predicated on a collaborative process with access to customary due diligence,” Jochen Tilk, PotashCorp President and CEO stated in a news release on the mining company’s website.. “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.”
The release went on to state PotashCorp will continue with their growth strategy which could include other acquisition attempts or successes.