BHP Billiton spent $314m on failed bid for Canada's PotashCorp

16 February 2011 17:52  [Source: ICIS news]

TORONTO (ICIS)--BHP Billiton spent $314m (€232m) in finance charges and on bankers, lawyers and other fees related to its failed $39bn bid to take over PotashCorp last year, the Anglo-Australian mining giant said on Wednesday.

BHP disclosed the cost in its latest financial report.

Canada’s government blocked BHP’s bid for PotashCorp, the world's largest fertilizer producer, under the country’s foreign investment rules.

Many observers believed the decision was politically driven, saying Prime Minister Stephen Harper’s minority Conservatives were concerned about losing seats in PotashCorp’s home province of Saskatchewan.

In its report, BHP also reiterated its plan to proceed with a feasibility study for its grassroots Jansen potash project in Saskatchewan.

If everything goes to plan, Jansen could eventually produce 8m tonnes/year of potash after start up in 2015, BHP said.

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By: Stefan Baumgarten
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