Australian concern BHP Billiton's acquisition of the world's largest potash producer Potash Corporation of Saskatchewan, Canada, the case finally got the results. November 3rd, the Canadian Industry Minister Tony Clement announced that the Government of Canada does not agree with BHP Billiton, Potash Corporation of Saskatchewan acquisition program. Although this is not the final decision of the Government of Canada, but analysts here believe that the acquisition of BHP Billiton's potash fertilizer has become very slim hope that the.
August of this year, plus potassium suffered BHP Billiton launched a "hostile takeover" offer, the purchase price of nearly 400 billion U.S. dollars, but the purchase price has not been added potassium recognition. Industry insiders say that if the price differences between the two sides continue, adding potassium may prevent the acquisition of BHP Billiton. Despite many obstacles, but BHP Billiton did not stop the action, they are still fighting for all aspects of support. BHP Billiton announced September 24 that their case has been the acquisition of additional potassium by the U.S. Federal Trade Commission approval. If BHP Billiton does not move to raise its offer after the board increase of potassium, which will again direct the latter's shareholders to raise its offer.
Since K is a scarce resource, so access to potash industry has a high threshold. Currently only 12 countries in the world discovered the mineral potassium, and each put into a new mine at least 7 years. As the world's largest potash producer, the current year plus at least 10 million tons of potassium fertilizer production capacity, and this number is equivalent to the world's potash fertilizer consumption in 2008 to 20%, it basically equal to the acquisition of control of the initiative in the international potash market , control.
No wonder the rich and powerful BHP Billiton added potassium determined to win, it seems that the expansion of multinational corporations, in essence, the battle for scarce resources. BHP Billiton's acquisition of additional potassium, by the U.S. "The Wall Street Journal," the British "Financial Times", and other international media generally good. However, the local government of Canada strongly opposed to this merger, Saskatchewan Premier Brad Wall is very unhappy about the news reports, insisted that the case, if approved, will result in the province more than 60 billion dollars revenue loss, he resolutely opposed.
Local government pressure forced the Government of Canada, after more than three months in silence, finally made it clear. Canadian Industry Minister Tony Clement said the BHP Billiton takeover bid for Canadian K did not bring any real benefits to Canada. Canada wants to attract investment and business, but some decided only once, and there is no turning back. Fortunately, the acquisition of BHP Billiton added the road of potassium has not been completely blocked, it can make an additional statement within 30 days, or to provide supplementary programs, then the Government of Canada will make the final decision.
Zibi Billiton announced the acquisition of additional potassium after the Chinese companies feel uneasy, and many people even worry that China iron ore, potash companies will repeat the mistakes. According to the China Salt Industry Association statistics: in 2008 the apparent consumption of China's potash 5.882 million tons, to 5.172 million tons potash, of which 2.775 million tons of domestic potash, potassium 3.249 million tons of imports. Domestic potash potash imports about 55% of apparent consumption (external dependence in 2007 was a record 71.8%), the actual demand and the gap between domestic production has reached 7.7 million tons.
The difference is that with iron ore, potash fertilizer in the global distribution of the relative concentration of the whole territory of Canada, accounted for 53% of the world's resources. Plus potassium is the world's largest potash producer capacity, but also China and reliable negotiating partner over the years, imports of potassium partners. At that time, due to be passed like in the bid of adding potassium fertilizer and other Chinese enterprises, invariably silent, much criticism of the domestic media.
 As added potassium hold Sinofert 22% of the shares, if BHP Billiton acquisition of additional potassium success, not only Sinofert part of the assets will fall into the BHP Billiton hand, and as the main potash importer, China will once again be faced with iron ore imports the same challenges, the challenges come from the same competitor - Mining giant BHP Billiton. Chinese enterprises which will have a very negative impact. Because of the lack of China in the international potash market, pricing, and the annual import volume is quite large.
Therefore, BHP Billiton's acquisition of additional potassium failed to China is a big positive. If after 3 months, BHP Billiton takeover by the Canadian government completely rejected, so that Chinese companies do not need no longer fear, but with the added potassium cooperation will be more closer. In fact, China is a big country of agriculture and population, is also a big market of potash, add potassium to their acquisition by multinational corporations than to strengthen cooperation with Chinese enterprises, so that their future will be better.
The good news is that recent increases in potassium of the Group signed a memorandum of cooperation 2011-2013. Under the MOU, the next three years, imports of chemical fertilizers will increase 3.15 million tons of potassium fertilizer, a total of about one-third of China's potash fertilizer imports. It is understood that this MOU is a framework to the agreed number of imports each year, Canada's purpose is to lock as soon as possible the supply of potassium fertilizer on the total Chinese market to protect the next few years, the basic stability of the domestic potash supply. (Qiu Lin)