10 December 2010 16:08 [Source: ICIS news]
TORONTO (ICIS)--Germany-based fertilizer major K+S is confident that its Canadian dollar (C$) 434m ($430m) bid for Potash One will not be blocked by Canadian regulators or the target’s shareholders, a spokesman said on Friday.
Last month, BHP Billiton’s high-profile $39bn bid for PotashCorp failed when ?xml:namespace>
However, Michael Wudonig, spokesman for Kassel-based K+S, said his company’s bid for Potash One was below a key threshold that prompts Canadian federal intervention in foreign takeovers, and as such would not need to clear that hurdle.
“We are only required to register our plan to take over Potash One, but there is no need for approval on the federal level for us,” Wudonig told ICIS.
A bidder would exceed the Canadian federal threshold if the takeover target’s net asset value exceeded C$299m, he said. The net asset value, and not K+S' C$434m offer price, was the decisive criteria for federal intervention under Canadian rules, he added.
Wudonig also said that unlike BHP’s bid for the world’s largest fertilizer producer, K+S’ target was a junior potash firm that had not yet begun producing.
With the deal, K+S would take over and develop Potash One’s
Potash One shareholders are scheduled to vote on the deal next week, and K+S expected to close the deal by mid-January, he added.
($1 = C$1.01)
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