2 September: Potash 'not M&A immune'
 |
| BHP Billiton CEO, Marius Kloppers |
Potash industry will not avoid consolidation, says Russia's leading producer Uralkali, while Belarussian Potash Co. talks up prices by $40/tonne
2 September: Sinochem hires HSBC on PotashCorp options Sinochem has hired HSBC bank as advisors as it considers its options on a potential counterbid to rival BHP Billiton’s, according to the
Wall Street Journal.
2 September: SPOTLIGHT: Potash top 10IM looks a the world's top 10 potash producers and how a new wave of M&A could change the face of the industry.
2 September: China threatens to launch anti-monopoly investigation Chinese competition regulators are considering an inquiry into BHP’s proposed takeover bid, along with a potential merger between Russian potash producers, Uralkali and Silvinit, according to local media reports.
Any anti-monopoly action by Chinese watchdogs is likely to be challenged by BHP, as the Anglo-Australian mining group does not presently produce any potash.
31 August: BHP 'will not sell Potash divisions' Finance website,
This is Money, reports that BHP will not seek to sell any phosphate or nitrate assets of PotashCorp. should it succeed in its takeover bid.
30 August: Agrium would look at PotashCorp fertiliser assetsIn an interview with
Bloomberg Businessweek, Agrium CEO, Mike Wilson, said it would consider buying any PotashCorp assets should BHP secure a takeover and look to sell divisions.
30 August: BHP's Potash bid to be reviewed
The Sydney Morning Herald reports that the miner is set to review its bid for PotashCorp and include legislation, regulations or permitting as part of its response
26 August: Sinochem shapes for PotashCorp bidThe battle to acquire PotashCorp took another twist after China’s Sinochem Corp. took out a loan to give it leverage for a bid to rival BHP Billiton’s offer.
Sinochem was reportedly granted $1bn by foreign lenders The Bank of Tokyo Mitsubishi UFJ, ANZ Bank, Standard Chartered and Credit Agricole, in addition to other Japanese finance companies.
26 August: Flaherty says BHP's potash bid shows need for national Canadian regulator
Canadian Finance Minister calls for national securities regulator in wake of BHP bid,
Bloomberg reports.
26 August:
BHP faces potash cartel backlash Financial Times, London
, reports that Agrium and Mosaic throw weight behind Canpotex, the potash exporter, after BHP exit fears,
25 August: FOCUS – Who controls potash prices?IM reviews the effects a successful bid by BHP might have on the global pricing mechanism for potash.
Markets are presently balanced by a small number of export agencies and producers including Canpotex, which is part owned by PotashCorp, and its European counterpart, BPC.
25 August: BHP: Rival Potash bid unlikelyBHP Billiton’s chief, Marius Kloppers, said it was unlikely that rival companies will compete to acquire Canada’s PotashCorp, adding that a bid from a downstream fertiliser group (such as Sinochem) would not be attractive to the Canadians.
Kloppers added that BHP would not pay over the odds to acquire PotashCorp: “This is the only bid that is on the table... If some interloper comes up and offers some ridiculous price for this asset, I’m going to say ‘good luck’.”
25 August: BHP would negotiate on CanpotexBHP said it will negotiate with other shareholders over the future of joint-venture potash marketing agent, Canpotex, should its takeover be successful.
“We will only transform it if the other shareholders want to transform it. Even if the Canpotex shareholders are of like mind, markets don’t change overnight and they change by decree,” Kloppers said.
24 August: BHP pricing could destroy potashA leading producer of potash has told
IM that BHP must take a fresh look at its potash pricing structure if it is to buy PotashCorp.
“What BHP has said in the past about pricing does not make sense for this industry,” said the source “Some are worried that BHP will continue its strategy of running at 100% capacity and placing its product on the market through price.”
23 August: PotashCorp tries to spark bid warPotashCorp confirmed further interest for the company in the wake of BHP’s bid as it attempted to start a bidding war. Rumours focus on Rio Tinto, Vale and Sinochem.
“PotashCorp has been approached by, and has initiated contact with, a number of third parties who have expressed an interest in considering alternative transactions,” the company explained.
 |
| Bill Doyle, PotashCorp CEO |
19 August
:
BHP’s Potash war gets personal
FT Alphaville (blog): The finance sector reacts to deal amid rumours of rival bidders.
18 August: Potash M&A could push up pricesIncreasing consolidation in the potash industry could cause expansions to be limited or delayed, driving price increases for fertilisers, according to one market analyst.
“We expect consolidation in the potash market to limit and/or delay planned capacity expansions, which would be supportive to fertiliser prices,” said Charles Neivert, analyst at Dahlman Rose & Co.
18 August: FOCUS – BHP’s potash pursuitIM looks at the prospects of consolidation in the potash industry following the bid by BHP and developments towards a Russian potash monopoly.
Since the potash market boom from 2007 to mid-2008, when spot prices rocketed to a $900/tonne average, the larger mining companies have been vocal about the possibilities of entering the market.
18 August:
BHP hostile bid for PotashCorp spooks debt market Telegraph, London
, reports that spread on BHP's debt rises by 44 points to 144 after PotashCorp approach
18 August: BHP goes hostile on PotashCorpBHP has positioned itself for a hostile takeover of PotashCorp., going straight to the shareholders in a bid to lure sales at a $130-a-share all-cash offer.
Analysts at Credit Suisse value PotashCorp shares at $180, assuming it carries out the planned expansion of its Canadian mines to a total capacity of 17m. tpa.
17 August: PotashCorp rejects $39bn. BHP bid
PotashCorp announces that it has rejected a $38.6bn takeover bid from the world’s largest mining company, BHP Billiton.
The $130-a-share offer was deemed grossly inadequate by PotashCorp’s board of directors, who slammed the bid as opportunistic, considering the strong market outlook for the fertiliser mineral.
13 August: BHP set to market own potash
World's largest miner set to shun Canpotex with new production from the Jansen project in Saskatchewan