Giant resource firm BHP Billiton Ltd formally announced on Monday that it is withdrawing its $US45 billion takeover bid for Potash Corporation of Saskatchewan Inc, re-echoing the earlier claims of the Canadian government that provisions of its offer sheet could not come to terms with the net benefit requirements of the Investment Canada Act for the deal.

Admitting disappointment on the quashed acquisition of the world's largest fertiliser producer, BHP Billiton chief executive Marius Kloppers said that the proposal has been withdrawn as the company realised that obtaining anti-trust clearances for the deal would be next to impossible under the present circumstances.

Despite its decision to drop its bid, Mr Kloppers gave assurance that BHP Billiton remains committed to its ongoing investments in Canada and even revealed that a re-calibrated investment plans would be pursued by the mining firm for Potash Corporation.

In a statement made public over the weekend, BHP Billiton reiterated its position that the business proposal it pushed for the deal would have lead to considerable net benefits for both the federal government of Canada and the provincial government of Saskatchewan.

The company further outlined that it was even bent on establishing a global headquarters in Canada for the potash firm had the deal materialised, thereby assuring that hundreds of millions of investments would be poured in the country, which could have generated jobs and infrastructure developments for the next five years of exploration.

Also, BHP Billiton revealed that plans were also underway for the Australian mining company to enter Canada's Toronto Stock Exchange.

The Canadian government blocked the deal as its Industry Minister Tony Clement argued that the proposal ran in counter with the net benefit concerns of the Investment Canada Act while Saskatchewan Premier Brad Wall called on federal authorities to think hard before deciding to cede control of Potash Corporation to a foreign company.

Premier Wall maintained that Potash Corp is too precious for both Canada and Saskatchewan, considering that its current production capability is able to supply 50 percent of the world's potash needs.

However, BHP said that it was ready to accept conditions that would have convinced Canadian authorities that the proposal could have been mutually beneficial for all parties concerned and chief of them was BHP's willingness to waive tax benefits set to be enjoyed by the company if only "allay any concerns the province of Saskatchewan may have had regarding potential losses in revenues."

Irrespective of the deal's outcome, Mr Kloppers said that BHP is pretty much ready to continue its Jansen project as he announced too that the suspended $US12.0 buy-back program in Canada would be resumed very soon.

The program's resurrection, according to BHP Billiton chair Jac Nasser, "is entirely consistent with our commitment to maintain an appropriate capital structure while we continue to make substantial investments in our growth projects on Canada."