Potash Corp. of Saskatchewan Inc. has responded to K+S Group’s rejection of its takeover offer, reiterating its position as to how a merger is a good deal for both companies, and seeking to discuss the matter further with K+S management.
"We believe that the combination of our two companies would create a well-capitalized, more diversified company across products, geographies, production, distribution and customers," said PotashCorp CEO Jochen Tilk in a statement July 3. "We believe this creates greater opportunities and security for all employees. Management and employees of K+S are critical to the future performance of the combined company and we look forward to working collaboratively to address any issues, including safeguarding the interests of employees and communities. We are seeking to meet with K+S management at the earliest possible opportunity so that we can jointly discuss our commitments and further specify the details that would form the basis of a successful combination."
PotashCorp highlighted major points regarding a merger between the two companies:
- Proposal brings together two best-in-class companies with complementary assets and minimal overlap
- PotashCorp supportive of K+S operations, employees and communities, and believes K+S management and employees to be an important part of a successful combination
- Proposal not predicated on closing mines, curtailing production, selling the salt business or cutting jobs
- Well capitalized, diversified enterprise provides platform for future growth and greater opportunities for K+S employees’ career growth and employment stability
- Proposal of €41 per share in cash provides 57 percent premium to the volume weighted average share price during the prior 12 months, and certain value to K+S shareholders