BHP Abandons $39 Billion Bid for Potash Corp

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Good evening to our viewers across China.

I'm Chloe Cho from CNBC and you're watching "Asia Market Daily".

Global mining giant BHP Billiton has finally conceded defeat, abandoning its $39 billion hostile bid for the world's biggest fertilizer maker, Potash Corp.

The withdrawal comes 11 days after Canada's controversial decision to block the takeover.

BHP says the Canadian government was asking for too many concessions, beyond the more than $1 billion worth of benefits it had offered.

The failed takeover raises questions about BHP's growth prospects - following a collapsed takeover of rival miner Rio Tinto in 2008 as well as the breakdown of its proposed iron ore joint venture with Rio just last month.

Transaction costs for the three failed deals amount to more than $800 million.

The miner has now promised to return $4.2 billion to shareholders - as part of its $13 billion share buyback plan, which was suspended in 2007.

(SOT) John Corr, Managing Partner, Fortitude Capital

"A company that's generating 40 billion dollars worth of free cash flow a year has got to do something. We know they have been investing significantly in trying to grow their exploration, but there's only so much you can do with that amount of money. Unless they make a major transaction, the shareholders have got to see it back in some form or another, you know and as a rule we like to see companies giving cash back to shareholders to make their decisions not trying to make the decisions for them."

Meantime, Standard & Poor's has given BHP the thumbs up. The ratings agency has taken BHP's long-term ratings off its negative watch, saying scrapping its debt-funded offer for Potash "has reduced the potential pressure on the group's financial risk profile".

That wraps up the latest Asia Market Daily.

I'm Chloe Cho from CNBC, enjoy the rest of your night.

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