Chinese Companies May Bid for Potash
Chinese companies may bid for Potash Corp, (POT) as the country's growing food needs make access to fertilizer increasingly urgent.
Companies including Sinofert, Chalco and ChemChina are all potential bidders for the Canadian company, Reuters reported without naming its sources.
BHP Billiton (BHP) has made a $39 billion hostile offer for Potash Corp, the world's largest fertilizer firm. Potash Corp is soliciting alternative bidders willing to top BHP Billiton's offer.
"The notion is that this is the Cadillac of the (fertilizer) business," one source told Reuters.
China's food consumption is growing as more of its vast population achieves middle-class incomes. The country has a limited domestic supply of potash, which is crucial to raising crop yields.