The takeover bid of 38 billion dollars from the mining giant BHP Billiton of Australia has been rejected by the largest fertilizer maker of the world, PotashCorp. The mining giant BHP has offered 130 dollars per share to buy the PotashCorp with a premium of 16% on the closing price of the shares on Monday.

On the other hand, the fertilizer giant has said that, the offer has undervalued the company and they were not interested with the deal at all. PotashCorp had reported the profits more than doubled and reached to 472 million dollars in the last month as the second quarterly profit.

The company has said in a statement that the fertilizer industry is recovering from the global economic crisis and the company officials are very confident that the shareholders of PotashCorp would be benefited from the current and potential value of the company.

According to the company, the demand for food is gradually increasing globally which is giving a chance to grow for the fertilizer industry and being the largest fertilizer producer of the world the profits will be seen for the company in near future.