Said nothing, did not do anything, from August 18 onwards, Chinese enterprises were involved in BHP Billiton's takeover battle with Potash.

        Day, the world's largest potash producer, Canada Potash Corp of Saskatchewan (POT.N), suffered the world's largest mining company BHP Billiton launched a hostile takeover offer, total 39 billion U.S. dollars. 

       This is not only the largest ever BHP Billiton an acquisition, but also from the U.S. Merck in March 2009 to 47.1 billion U.S. dollars raised since the acquisition of Schering, the world's largest a potential acquisition.

       Seemingly nothing to do with China. But in fact, Potash holds Sinofert (0297.HK) 22% of the shares. If the acquisition successfully, as a major importer of potash, iron ore, as China will once again face the challenge as the challenge from the same competitors - BHP Billiton. 

       August 27, China Petroleum and Chemical Industry Association Wang Xiaofeng, deputy director of Industry Development in the reporter's interview bluntly: "potash industry, the relative concentration and monopolization of resources, BHP Billiton initiated this acquisition, if successful, is bound to exacerbate the situation, will have a negative impact on the Chinese side. because we do not have pricing power, higher than imports. "

       It is in this context, from the highest relevance of Sinochem, to hand heavily in the vote, in the gold country for investment, as well as non-business related aluminum, among the strongest wind Magnolia funds are placed by the industry Potash involved in competition for high expectations.

       A long-planned acquisition 

                                BHP eyeing Potash, began in 2003. 

      "It's like the same people become friends, first start from the understanding. At that time, BHP Billiton, or potassium in the field of new, actively expand exchanges with the Potash and seek cooperation." A mining consulting firm in Canada, a researcher at the back of this Daily News, e-mail said, "Canada's potash reserves and production rank first in the world, BHP Billiton will not remain indifferent." 

      With access to both sides of the community, BHP Billiton's ambitions began to acquire Potash gradually exposed. Canadian researchers in the message provide a detail - as early as 2006, the Canadian potash suppliers in the debate BHP Billiton acquisition of Potash possibility, "I remember a fellow party, we talk about this topic, no one believed that BHP Billiton ready. "

      But BHP Billiton has not shot in 2006, but turned to look at the "K Empire" layout.

      In 2006, BHP Billiton to jointly invest in the way of Canada Saskatchewan On the Law of potassium mining companies (Anglo Potash) cooperation; in July 2008, BHP Billiton completed the safety of all Romanian potash acquisition, wholly owned by the Saskatchewan 7338 sq km potash exploration rights.

      In the same year, BHP Billiton's diamonds and specialty salt company was in Canada's Saskatchewan potash all controlling Jansen. 

      Crazy in BHP Billiton to expand potash business, while its competitors - the world's second largest mining companies, the largest iron ore supplier CVRD (Vale), also in large-scale distribution of the fertilizer industry.

      Vale CEO Roger Agnelli said: "The future operation of the diversified Vale, for four years to become a major seller of fertilizer production and."

      February 2009, Vale to 850 million U.S. dollars in cash, to seek out the debt burden from the Rio Tinto acquired the hands of its potash assets - including the Potasio Rio Colorado in Argentina potash project and exploration assets located in Canada, Regina.

      This year in May, Vale has completed the world's largest oilseed processor Bunge (Bunge Limited) acquisition of the assets: 38 billion cash acquisition of Bunge mineral fertilizer business in Brazil, including phosphate mining, manufacturing, and phosphate fertilizer company Fosfertil 42.3% stake, was control. 

       Previously, Bunge control 25% of Brazil's National Fertilizer and fertilizer raw materials imports, the market share of retail business in Brazil more than 25% compound annual sales of 5.5 million tons.

      Some analysts pointed out that this marks the Vale of fertilizer business from the general chemical fertilizer to high-end consumer market, consumer market.

      August, Vale first overseas operation in the rock - Peru Bayóvar official running the project, the output of phosphorus will be the main provider of the Brazilian domestic market.

      In addition, Vale's massive expansion, in addition to Peru Bayóvar projects, still in Sergipe, Brazil has the only potash Taquari-Vassouras. 

             But for BHP Billiton, Potash Corp more attractive than the obvious.

      As the world's largest integrated fertilizer, feed and related industrial products manufacturer, is the world's largest potash fertilizer production company, Potash has six potash mine and a potash mine in the part of the rights and interests. In 2009, its global production of potash fertilizer production accounts for about 11% share of global potash production capacity by 20%.

      August 25, BHP Billiton CEO high Reith (Marius Kloppers), said: "The acquisition of Potash meet BHP Billiton development of large low-cost, long cycle, scalable, and export-oriented diversification of a portfolio, Potash will further diversify BHP Billiton a portfolio. " 

      Potash figures released by 2015, company annual potash production capacity from the current 11 million tons to 17 million tons. 

                              "Cutting those seeking" BHP Billiton

      "The army attack plan, followed by diplomacy, followed by the cutting forces, which under siege." BHP Billiton chairman Jac Nasser, CEO of high-Reith, one week, "Henzhao."

       August 11, BHP Billiton offered to buy 130 U.S. dollars per share offer, was Potash board to "seriously underestimated" the grounds of rejection.

       August 18, BHP Billiton launched a hostile takeover, bypassing the Potash board, its  shareholders directly 38.6 billion U.S. dollars in Canadian history of the maximum purchase price. This is from the February 2008 acquisition of the world's largest since the debt financing the project. 

      In order to proceed smoothly, BHP Billiton from the Spanish national bank, Barclays Capital, BNP Paribas, JP Morgan Chase, Royal Bank of Scotland and Toronto-Dominion Bank arranged a 45 billion U.S. dollars of the "acquisition of special loans", in which five family will serve as the loans Accommodation line and bookkeeping processing line, TD Bank will play a lead role in rows and bookkeeping person.

      According to foreign media reports, the loans from several components, including issuing bonds to raise 25 billion U.S. dollars a year for the bridge loan, 100 million three-year loans, 50 billion 3-year revolving credit facility, and five billion U.S. dollars The 4-year revolving credit facility.

      Nearly 400 million acquisition of "threshold", luxury finance team, potential competitors may have, to a minimum. 

    August 25, BHP Billiton and then released "perfect" results. June 2009-June 2010, full-year net profit of 12.72 billion U.S. dollars, 5.88 billion U.S. dollars over the previous year's net profit rose 116.3 percent; good balance sheet, annual cash flow reached 17.9 billion U.S. dollars. 

        Although high Reith made: "Do not buy at any cost to be unwise." But even meet the expectations of analysts, and further enhance the offer for the acquisition of Potash, BHP Billiton can easily digest.

       According to Potash Corp2009 annual report revealed that from 1991 to 2009 nearly 20 years, its annual output of potash fertilizer in between 3.5 million tons to 10 million tons volatility, especially in the years 2008 to 2009, its potash production from nearly 9 million t straight down to 3.5 million tons, but production of potash gross margin is still 60%.

      This is because as supply-side monopoly, it can directly affect the regulation of production of the final price.

      Potash also expects global demand for potash from less than 30 million tons in 2009 soared to 50 million tons. Indicates that manufacturers will have a lot of money for profit.

      BHP Billiton declared that: "Canada is the world's one of the largest mineral resources. BHP Billiton's goal, not just re-open a mine, but to the province of Saskatchewan to establish a huge new business."

      Currently, BHP Billiton has Jansen, Boulder, Young, Burr, Melville Western Canada potash five development projects, with the exception of Jansen projects, other projects still in the preliminary exploration stage. Jansen project is expected to put into operation in 2015, cost about 12 billion U.S. dollars, the largest annual output of 8,000,000 tons.

      According to analysis of industry estimates that by 2015, Potash's potash production capacity to 17.1 million tons / year. If the acquisition of BHP Billiton, the K total capacity will reach 25.1 million tons / year, BHP Billiton will jump to the top of the global potash industry, and will have the raw materials market two advantages. 

                                    Affects the nerves of China 

     Just now when K maneuvers giant, China has had to face an embarrassing situation: Each year more than 50% of the fertilizer demand from abroad.

     According to the China Salt Industry Association statistics: in 2008 China's apparent consumption of potash for the 5.882 million tons, K for the 5.172 million tons, of which 2.775 million tons of domestic potash, potassium 3.249 million tons of imports and exports potash 142 thousand tons. Domestic potash potash imports about 55% of apparent consumption (external dependence in 2007 up to 71.8% once a record), actual demand and the gap between domestic production has reached 7.7 million tons.

     "We can say that global potash quantity are many, across Canada accounted for 53% of the global amount of resources. But very different in China, we use about 7% of the world's arable land, only 1.6% of the world The potash resource to support accounting for 20% of the population. "Chuan International Mining Holding Company Limited in the International Department of the Feng told the reporter.

       2010, China's potash fertilizer imports will be mostly from Belarus and Canada. 

        This year in January, the Joint Negotiating Group on the Chinese side in 2010, import prices and quantities of potash fertilizer in China and Belarus Potash Company (BPC) signed a formal contract, to determine K CIF 350 USD / ton quantity of 800 thousand tons to 120 tons;

       In February, another marketing alliance with Canadian potash - Canpotex signed in the first quarter import 350,000 tons of potash agreement. According to report, Canpotex is what Potash potash exports to China has been the main channel.

      Potash website bulletin show that in 2008, China's imports from Canpotex 100 million tons, accounting for total potash fertilizer in 2008 China imported 3.59 million tons of approximately 28%. The first quarter of 2010, Canpotex with the number of contracts signed K 35 million tons, according to one quarter of projected up 1.4 million tons this year.

     In addition, Potash also holds Sinochem Fertilizer Sinochem Group (0297.HK) 22% of the shares, which manages a significant share of China's potash fertilizer imports.

     Nakagawa International Feng told the reporter of that: "BHP Billiton on Potash acquisition, the one can increase their share, and secondly, through a gradual approach, resources and gradually to maximize concentrated in their hands, so in the international supply and demand play an active regulating role. " 

     BHP Billiton CEO Reith has high signal, similar to the company can help end iron ore benchmark pricing method, the agreement also led farewell potash market price. 

      According to foreign reports on August 27, high Reith weekend to North America, Potash shareholders to lobby them with the current 130 U.S. dollars per share offer.

     For this large acquisition, the Director of the Office of Group General Manager Li Qiang, when interviewed in this stressed: "This is the global industry's larger events, we as a domestic potash industry's largest companies, but also with this company has a long-term cooperation, we will pay close attention to. "

     Because of this, Chinese companies had bought Potash, with BHP Billiton continued speculation positive competition. August 27, a mergers and acquisitions industry veteran, told reporters on the newspaper: "The Chinese enterprises directly shot and BHP Billiton bid for the possibility could be almost none. But if the investment or project finance investment opportunities, perhaps the Chinese consortium There may be. " 

     The source told reporters that China's private equity investment fund Magnolia, may be interested in leading a consortium involved.

     August 24, the Wall Street Journal has quoted informed sources, the composition of Magnolia, including the lead from Canada, the United States and Asia, investors, and at least two sovereign wealth funds, and one pair of interest in the mining or chemical fertilizer industry in China strategic investors.

     "This strategic investors in China may be the Chinese Chemical Industry Group." The acquisition of veteran, said the reporter.

      As early as 2007, China Chemical Industry Group, once the joint Blackstone Group (Blackstone) and Fox Paine Management, trying to use 3.0 billion Australian dollars of the price, the acquisition of Australia's largest agricultural chemical companies new agricultural company (Nufarm), but the deal fell through .

      But everything is still speculation, to today, Chinese companies or consortia is no clear trend to play "white knight" To help Potash check BHP Billiton. 

      In addition, Potash fertilizer cartel in Canada, a partner in Mosaic and Agrium, decided to adopt the pricing and marketing arrangements, to prevent BHP Billiton acquisition of 39 billion U.S. dollars to maintain the potash pricing.

      Potash CEO Bill Doyle and then revealed: "There are many third-party company to send an offer for us, and come with us to contact. Varying industries in which these enterprises, covering almost all areas, we are very surprised. "

Repeating the mistakes of iron ore? 

                                     Like most of the iron ore market.

       If the global scramble for resources is a field of great games, powerful roles, such as BHP Billiton, will the Chinese side in the iron ore, potash and other multiple mining areas, to face challenges. 

       In the field of iron ore, ore-grown less than half require a lot of imports, while BHP Billiton, CVRD, Rio Tinto iron ore three people control over 70% of seaborne trade.

      Potassium resources, too. This resource in the global distribution is relatively concentrated, such as Canada, Russia, Belarus, Germany, Israel, Jordan, the total output of the six countries accounted for 88% of the world, China's output accounted for 1.6% of the world.

      Both would need to import the negotiations, the agreement also exists and the market price of the "dual system", and kept in China's internal "monopoly profit."

      Wang Xiaofeng told this reporter: "Let the State potash price negotiations have been taking place, at the beginning is the technology, then gradually open up so the middle peasants, the right to import and export of construction and so there. And this topic has become more sensitive, is From around 2006. "

      April 1993, Sinochem Fertilizer import agent obtained the right to operate Canada's potash fertilizer import exclusive products. Is the end of the year, the state also gives China - Arab Chemical Fertilizer Company Limited (A) the right to operate their import agent. But the latter is limited to personal use of fertilizer imports, may not be sold.

     Among them, the Sino-Argentine company's nitrogen and phosphate fertilizer prices are their own negotiations with foreign countries, but the K-based import agent from Central, in the agency cost of only charge.

     November 1998, the imports of potash, "dominance" situation has been broken and the Chinese agricultural production group (the middle peasants) to join in on Russia, Belarus potash procurement, Sinochem, middle peasants, 40% each, the proportion of 60%. Other areas, rests with Sinochem signed.

     So far, the world's largest producer of potash exports to China three, completely Sinochem, middle peasants both monopoly.

     In 2002, further expanding the ranks of imports, China National Chemical Construction Corporation (referred to in the of construction) and the China International Trade Reclamation, Inc. (China Ken) were eligible for fertilizer import business. But the two mainly in Germany, Jordan, the relative surplus of potash production area, a small number even higher prices.

     After 2004, should continue higher purchase cost potash production calls for direct import business growing, industry associations have written to Development and Reform Commission, required to reduce the cost of circulation, so that large-scale fertilizer production enterprise has the right to self-import. 

     Year in September, the Commerce Department issued a public notice, in the oil and gas group, Lubei enterprise groups in Shandong Province, Shandong Luxi Chemical, Hubei Yang Feng, western Liaoning, 5 self-import enterprises to obtain the right fertilizer. However, in addition to technology, middle peasants, Sinochem Building, Chinese imports of potash can be cultivated four domestic trade flow into the other house the production of potash fertilizer have to be for personal use, not business sales. 

     In addition, iron ore, "chronic illness" The difference is that K scramble for resources, China also faces from the "neighbors" of the competition.

     Like China, India, also totally dependent on imported potash, so the company is also seeking the establishment of the Canadian potash joint venture to produce - and iron ore, India ore spot market but the main force of China.

     Perhaps this global K "war" is just a start it. (Bai Ying)