K+S rejects fresh approach from Potash Corp.

K+S rejects fresh approach from Potash Corp.

Workers near a stockpile at Potash Corp.'s Rocanville potash mine in southeast Saskatchewan. (Image courtesy of Potash Corp)

Germany-based potash producer K+S AG is said to have rejected a fresh approach from Canadian giant Potash Corp. of Saskatchewan (TSX, NYSE: POT) aimed to restart talks around a possible merger with the European miner.

According to a spokesman for K+S, Potash Corp chief executive, Jochen Tilk, met recently with authorities from the regional state of Hesse in order to explain how the company intended keep all workers currently employed, Reuters reports.

The plan was later handed over to the German company’s executives, the person added:

“We've looked into these statements and concluded that they contain nothing substantial beyond what we had already been given in writing. That's why we still see no basis for talks."

The German miner rejected a first approach by the Saskatoon-based firm bid earlier this month, arguing that it was too low and that Potash Corp. could be planning to dismantle the company, putting jobs at risk.

Potash Corp said on July 3 it was confident of addressing concerns brought forward by K+S and that it would seek to meet with the company’s management as soon as possible.

With the deal, Potash Corp. could regain some of its historic dominance over the fertilizer market, since two combined companies would account for 30% of global potash production.