PotashCorp mulls takeover of K S

OREANDA-NEWS. June 26, 2015. Leading Canadian potash producer PotashCorp is considering a takeover of German rival K+S, the latter said today.

PotashCorp has submitted a written proposal for acquiring all outstanding shares of the German potash and salt producer, pending certain conditions and due diligence, K+S said. K+S is assessing its options and said the process is ongoing. Any deal would likely have to pass an anti-monopoly review by the European Union.

PotashCorp declined to comment.

PotashCorp produces MOP in Saskatchewan and New Brunswick, Canada with a combined nameplate capacity of 15mn t/yr. It also holds minority stakes in Israel's ICL (14pc ownership), Jordan's Arab Potash (28pc) and Chile's SQM (32pc). PotashCorp bid to take over ICL in 2013, but that transaction was thwarted by Israeli government opposition.

K+S operates six potash mines in Germany and is developing the greenfield Legacy MOP mine in Saskatchewan, which is expected to begin production in second half 2016. It also is the world's leading salt producer with 32mn t/yr capacity.