With competitive, anti-trust possibilities not thought to be a problem for the acquisition of Potash Corp. (NYSE:POT) by BHP Billiton (NYSP:BHP), it is believed they could easily secure the deal if the offer job security and remain as part of the Canpotex marketing arm of the industry in North America.
BHP has said they would prefer to leave Canpotex and market the fertilizer on their own, a practice they've been doing for years with other products.
Along with Potash, Canpotex is made up of Mosaic (NYSE:MOS) and Agrium (NYSE:AGU).
The job guarantees shouldn't be an issue, as they've already communicated the desire to have that be part of the deal.
It would be better for them and the market if they left Canpotex, as it pretty much sets prices and supply for potash, and prop up the price to where they want it.
If BHP were to leave the marketing consortium, they would compete on price, and that would be better for their customers.
BHP will probably attempt to ignore Canpotex, but they may be pressed for guarantees as part of getting the deal approved.
No comments:
Post a Comment