British-Australian mining giant BHP Billiton said it had agreed to buy Anglo Potash for 284 million Canadian US dollars ($A300 million).
BHP Billiton said Anglo Potash's only asset was its 25 per cent interest in the Canadian potash joint venture development project in which BHP Billiton holds a 75 per cent stake.
If the deal is approved, BHP Billiton would take 100 per cent control of the joint venture, which is focused on developing the first new potash mine in almost 40 years in the western Canadian province of Saskatchewan.
BHP has agreed to pay 8.15 Canadian US dollars a share.
BHP Billiton Diamonds and Specialty Products president Graham Kerr said the announcement was "consistent with BHP Billiton's strategy of capturing and developing premium growth options in long-life, low-cost natural resources with a focus on delivering shareholder and stakeholder value."
