Anglo-Australian mining giant BHP Billiton has launched a hostile takeover bid for Canada's Potash Corp which values the world's largest fertiliser producer at about $40 billion.
The move came after the Canadian group's board rejected the world's largest takeover offer this year.
BHP Billiton said it was submitting its offer directly to shareholders and bypassing Potash's board, which a day earlier called the bid of $130 a share 'grossly inadequate'.
The miner, sitting on an estimated $11 billion cash pile, is looking to capitalise on a resurgence of the global fertiliser industry following a collapse in demand during the global economic slowdown.
BHP wants to become the largest fertiliser supplier to a world where survival means more farm production and China's voracious appetite for commodities is expected to grow.
BHP Billiton has long been interested in expanding into potash for its next spurt of growth, but investors had expected it to focus on growing its own assets, including the Jansen potash deposit in Canada.
