Potash market sky rockets making a hostile takeover from BHP more likely

For people in the agricultural industry, potash has been a hot topic recently. Agriculture thrives off of potash which is meant to help with its potassium. There is no option source for potassium in fertilizer. Potash is really essential to food. Without it, we would have no food supply. Potash hasn’t been needed as much anymore with the other minerals being more important. The potash demand is really supposed to go up now. An Australian minerals business has decided that is why they’ll take over, in a hostile manner, a Canadian potash business.

Potash more of the place to be when it comes to stock instead of BHP

Potash Corporation of Saskatchewan, known as Potash, has control over a big chunk of the world’s potash market. The Canadian fertilizer company should be concerned about a business in Australia. The big minerals extraction business in Australia, or BHP Billiton, is trying to get their hands on the company. The New York Times reports that a couple of days ago BHP made an offer to acquire the company for $ 130 a share. The Potash board rejected the offer as too low. BHP is putting the cash right in from of shareholders to try and get a hostile takeover Potash by paying a tender offer. Potash is trying to get a better offer from another when getting shareholders to stop selling to BHP.

Potash very significant to feed the world

Potash is made in only 12 of the countries. Canada, Russia, Belarus and Germany are the countries that make over 75 percent of all the potash. Potash is really just a term to describe any potassium that is created, which is essential for fertilizers, reports Reuters. Crops to better with quality and quantity with potash that also makes disease less likely. Potassium in fertilizer solely comes from this. Potash hasn’t been very stable in price. The prices have been volatile for years. Less than $ 150 a ton was how much it sold for ten years ago. In the global food crisis of 2007-08, it went up to $ 1,000 a ton. The price has gone down since then. It is $ 350-$ 375 a ton now.

The planet covets Saskatchewan potash

Potash has been ignored recently. It took the moves by BHP for anybody to recognize its existence. According to Entrepreneur, by 2011, there won’t be enough supply of potash if the growth continues as it has in the last five years. China, Latin America and India are all examples of places where meat consumption has gone up which is why this forecast was made. Within the next 20 years, 25 percent of the world could run energy off of biofuels such as ethanol as outlined by the UN, which is one more reason. Potash has gone up through this with an increase in wheat and corn prices. Yet the industry’s ability to increase supply is limited. You will find more than 25 years put into 85 percent of the potash mines right now. Untapped production capacity is limited and nearly all of it is Saskatchewan potash.

Discover more details on this subject

New York Times

dealbook.blogs.nytimes.com/2010/08/20/bhp-begins-tender-offer-for-potash/?src=busln

Reuters

reuters.com/article/idUSTRE67J2SQ20100820

Entrepreneur

entrepreneur.com/tradejournals/article/166229304.html