Germany’s K+S AG rejected a $8.7-billion (U.S.) bid from Potash Corp of Saskatchewan, saying the offer was too low and “completely disregards” the value of its large potash project in Saskatchewan.

Potash Corp., the world’s biggest fertilizer producer, is increasingly facing more competition in Canada and abroad. Acquiring K+S would give the Canadian company control over about 30 per cent of the potash market as well as K+S’s Legacy project in the prairies, which is due to start production next year and will contribute to the surplus of potash in the world.

The rejection could lead Potash Corp to go hostile and take its offer directly to K+S’s shareholders, which the Canadian company has indicated it may do pending a more thorough examination of K+S’s books.

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