The K+S Legacy construction site with drilling rig in Saskatchewan — Photo courtesy K+S Potash Potash Corporation of Saskatchewan Inc. (PotashCorp) e
The K+S Legacy construction site with drilling rig in Saskatchewan — Photo courtesy K+S Potash
Potash Corporation of Saskatchewan Inc. (PotashCorp) earlier confirmed that it has made a private proposal to K+S Aktiengesellschaft (K+S) (SDF: GR) to negotiate the acquisition of K+S by PotashCorp.
There is no certainty that any offer will ultimately be made or as to the terms on which such an offer might be made. PotashCorp does not intend to make any additional comments on this matter at this time unless and until it is appropriate to do so, or a formal agreement has been reached.
However, according to a report in the Globe and Mail, German owned K+S AG has rejected the $8.7-billion (U.S.) bid from Potash Corp. of Saskatchewan, saying the offer is too low and “completely disregards” the value of its large potash project in Saskatchewan.
Saskatchewan-based Potash Corp. is the world’s biggest fertilizer producer, is facing expanded competition in Canada and worldwide. Its plan to acquire K+S would give the Canadian company control over about 30 per cent of the potash market as well as K+S’s Legacy project in the prairies, which is to start production next year.
PotashCorp is the world’s largest integrated fertilizer and related industrial and feed products company by capacity and plays an integral role in global food production. PotashCorp is the world’s largest producer, by capacity, of potash and one of the largest producers of nitrogen and phosphate. These three essential nutrients are required to help farmers grow healthier, more abundant crops. With the global population rising and diets improving in developing countries, these nutrients offer a responsible and practical solution to meeting the long-term demand for food. While agriculture is its primary market, the company also produces products for animal feed and industrial uses. Common shares of Potash Corporation of Saskatchewan Inc. are listed on the Toronto Stock Exchange and the New York Stock Exchange.
Source: Potash Corp and Globe and Mail
