Bloomberg
Intelligence says Potash Corp. of Saskatchewan will face “tough regulatory
hurdles” in its $8.6-billion bid to buy K&S of Germany.
Potash Corp. has 20
per cent market share of the global potash market and K&S has eight per
cent.
Potash Corp. is
also a partner with Agrium Inc. and Mosaic Co. in Canpotex, an export cartel
that has Canadian approval. Together they hold 37 per cent of the global
market.
The U.S. corn seed market, where four
suppliers comprise two-thirds of the industry, puts things into perspective,
Bloomberg Intelligence said.
Syngenta AG, the world’s largest maker
of crop chemicals, has rejected an offer from Monsanto Co., the biggest seed
producer, partly on concerns that regulatory risks will far exceed a proposed
$2 billion breakup fee.
Monsanto has said it will sell Syngenta’s
seed division if it is able to buy Syngenta.
