Israeli govt rejects Potash Corp’s $15-bn bid for Israel Chemicals

The Israeli government has for now torpedoed a potential $15-billion takeover of Israel Chemicals Ltd (ICL) by Canada's Potash Corp of Saskatchewan (PotashCorp), the world's largest fertliser producer.

"The subject of a possible merger between Israel Chemicals and Canada's Potash is not being considered because the finance ministry has professional reservation," the ministry said in a statement.

"The Israeli government, which holds a golden share in ICL, will not allow any deal that endangers or impairs economic and environmental interests of the state of Israel and its citizens."

Earlier this week, ICL's biggest shareholder Israel Corp, controlled by the country's billionaire Ofer family, had said in a regulatory filing with the Tel Aviv Stock Exchange that PotashCorp CEO Bill Doyle has met with Israeli Prime Minister Benjamin Netanyahu and other government officials with plans of ICL formally merging with PotashCorp.

ICL also confirmed the news saying, "The company confirms it is aware that Canada's Potash is in talks with various government agencies that included a meeting with the prime minister regarding examining the possibility of merging ICL with Potash."

The latest move from the Saskatchewan-based company came nearly three months after it dropped plans of increasing its stake in ICL from 13.85 per cent to as much as 25 per cent as it was taking a long time in obtaining the Israel government and antitrust clearance.