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BHP Billiton Plc has launched the ultimate statement of intent for its ambitions in fertiliser minerals after a first bid of $38.6bn. for Potash Corp. of Saskatchewan, the world’s biggest producer, was rejected.
The mining group made an all cash offer equating to $130 a share which is set to be the largest deal of 2010 in any business.
BHP has targeted potash, the highest value fertiliser mineral, as its next growth engine marking a dramatic shift towards non-metallic minerals.
Changing diets together with a rising population and falling land availability has seen the importance of fertiliser dramatically increase. Yet mining-side consolidation has yet to take place.
PotashCorp. has branded the offer “grossly inadequate” believing BHP is taking advantage of a slow recovery in the fertiliser market.
Credit Suisse values the company’s shares at $142 based on PotashCorp’s 11.5m. tpa capacity from six mines in...