K+S tumbles as Potash Corp withdraws offer

K+S shares tumbled after peer Potash Corp announced on Sunday that it has withdrawn its proposal to negotiate a transaction with the company.

Potash said that since it made the offer on 31 May, deteriorating market conditions and a lack of engagement by K+S management mean that continued pursuit of a combination is no longer in the best interests of its shareholders.

“Our proposal reflected full and fair value, and was predicated on a collaborative process with access to customary due diligence,” said Jochen Tilk, PotashCorp president and chief executive officer CEO.

“Since that time, challenging macroeconomic conditions have contributed to a significant decline of global commodity and equity markets, with potash peer stocks down almost 40%.”

Potash had offered €41 per share, which reflected a 59% premium to the volume-weighted average of the K+S share price during the prior 12 months.

At 0835 BST, K+S shares were down 23% at €23.89, while Potash shares were up 4% at €20.49..