Off the pot

26 June 2015 By George Hay Follow @gfhay

The Canadian group that controls a fifth of global potash wants to buy K+S for over 7 bln euros. Success would give Potash Corp its German rival’s new Canadian mine and more pricing power. With a Russian cartel in flux and BHP also a threat, the move looks defensive.

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Potash Corporation of Saskatchewan said on June 25 it had made a “friendly proposal” to acquire Germany’s K+S Aktiengesellschaft (K+S).

Potash Corp said there was no certainty that any offer would be made and did not disclose the offer, but a person familiar with the situation said it was approximately 41 euros a share, valuing the group at over 7 billion euros.

K+S said it was currently assessing the available options, and that the process was still ongoing.

Shares in Potash Corp closed up 5 percent on June 25 at $31.89. Shares in K+S were trading at 36.7 euros, up 26.3 percent.

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