Asia Bizz: Potash Giants Merger May Encourage Chinese Firms Too To Join Bid
In it’s bid to become the worlds largest and sole fertilizer producing company, BHP Billiton,Â has offered a $39 billion to Canadian fertilizer producing giant Potash Saskatchewan, which will also be attracting bidders from China too. China is very large country and has a high yield of crop production, but has a limited resource of fertilizer production, this way even China is eying in the bid as a major player.
Potash Corp owns 22% in China’s Sinofert, which can also prove to be a strong contender for the takeover. Sinofert is a small fertilizer producing group with a $3.8 billion market value which is just a small fraction of Potash, but its parent group called the Sinochem has a $36 billion revenue strength.
Reuters reports that two more giant industrial players from China have emerged, Chalco an aluminum producing industry and ChemChina. These two companies have emerged and strong contenders to the Australian BHP Billiton who is in the Potash bid race.