Brazil's Vale, the second-largest mining company in the world, had been seen as a possible saviour for PotashCorp but on Monday Vale denied that it was in talks to acquire the Canadian fertilizer company.
PotashCorp had rejected a hostile takeover bid of $38.6 billion by the Australian mining major, BHP Billiton. It had then mentioned that it was in talks with other companies about counter bids.
It was being speculated that Vale was making a bid to acquire the fertilizer company but a brief statement was issued by the Brazilian mining giant denying the move. It said that there was no truth in the rumours going on about negotiations with the purpose of making a bid to acquire a fertilizer company.
The speculation was based on the fact that Vale is hoping to expand its position in potash to become one of the world's largest fertilizer producers by the year 2017. The spokesperson said that Vale was concentrating on developing its own projects rather than making acquisitions.