FRANKFURT—Canada's Potash Corp. has proposed a possible takeover to German rival K+S AG, the German fertilizer and salt producer said late Thursday.

Potash informed K+S it "may decide, depending on certain conditions, including a due-diligence exercise, to offer the shareholders of the Company the acquisition of all outstanding shares by way of a public takeover offer," K+S said.

K+S is assessing available options on the proposal, it said. The DAX-listed company had €3.82 billion ($4.27 billion) in sales last year and a workforce of more than 14,000 people.

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