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K+S investors see PotashCorp deal within reach despite rebuff


Written By: Eric Anderson, Jul 10, 2015

Reuters is reporting that "Shareholders in takeover target K+S say a deal could be done because suitor Potash Corp's main aim is to get control over its German rival's ambitious Canadian project and scale it back."

They go on to explain that

K+S's "Legacy" mine in the prairies in western Canada would be the first built from scratch in the global potash industry in almost 40 years. It would add to an already oversupplied market where demand is suffering from weak emerging market currencies and low crop prices.

 

Potash Corp could more easily ration global supply by controlling K+S, but still commit to leaving its German operations largely intact. The potential threat to K+S's domestic operations were seen as one reason why German regulators might block a deal.

Full story at http://www.reuters.com/article/2015/07/09/ks-ma-potash-shareholders-idUSL8N0ZO3PD20150709

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Posted in Farm related news | More articles by Eric Anderson


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