Chinese Consortium Takes A Look At Potash
A group of investors led by Chinese private-equity fund Hopu Investment Management is evaluating a takeover bid for Potash Corp. (NYSE: POT), the Wall Street Journal reported, citing a person familiar with the talks.
Potash, the largest make of its namesake crop nutrient, rejected a $39 billion takeover offer from BHP Billiton (NYSE: BHP) last week. BHP is the world's largest mining company.
BHP has since taken the offer hostile and press reports said on Sunday that Potash held preliminary talks with China's Sinochem and Brazil's Vale (NYSE: VALE), the world's largest iron ore producer.
The Journal reported that Sinochem is not part of the Hopu-led group, which includes investors from Canada, the U.S. and Asia and at least two sovereign wealth funds.
Chinese demand for potash fertilizer is expected to outpace domestic supply in the coming years, making Chinese interest in Potash logical.
The Journal reported that the Hopu group has not on whether or not to proceed with a bid for Potash.
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