The Potash Corp of Saskatchewan Inc has cancelled a proposed takeover bid for Israel Chemicals Ltd after criticism of the deal was made by workers and politicians alike.
The world's largest fertilizer producer based out of Saskatoon, Saskatchewan Ca in a statement, "Now is not the time to pursue this opportunity."
It added, as it announced its first-quarter earnings, "While we continue to believe that such a transaction would be of tremendous benefit to stakeholders of both companies and the State of Israel, there must be receptivity to foreign investment and certainty in the rules that govern such investment."
If the takeover pushed through, Potash Corp would have become the sixth largest potash producer and would have increased its capacity to 27% of global production. The numbers were confirmed by fertilizer industry information service, Green Markets.
Aside from the production, the proximity to India would also give the Canadian company a leg up on the competition, as India is one of the largest importers of fertilizer in the world.
Israel Corp's majority shareholder is tycoon Idan Ofer. The deal was finally broken with the Israeli government's so-called 'golden share', a right to block takeover bids for the company.
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