Friday, July 24, 2015

Germans upset by Potash Corp. takeover bid

Germans are upset with a $11.1-billion takeover bid Potash Corporation of Saskatchewan has launched against K+S AG, a major potash producer with head offices in Hesse state.

Politicians from both the ruling Christian Democrat Union and Green Party this week declared their opposition to the takeover.

The state does not, however, have authority to stop the deal.

The nub of the takeover is new multi-billion-dollar potash mine K+S is near to completing in Saskatchewan.

Potash Corporation of Saskatchewan, Mosaic and Agrium have formed a government-approved cartel that aims to maximize profits from exporting Saskatchewan potash.

Rival mines could undermine the cartel.


BHP Billiton of Australia made a bid for Potash Corporation, but was blocked by the federal government. It also had plans to spend billions to open the world’s largest potash mine new Jansen, Saskatchewan, but abandoned those plans in January, 2014.