Adding credence to the rumor China's Sinochem may be interested in acquiring Potash Corp. (NYSE:POT), they hired HSBC (NYSE:HBC) to advise them on the options available to them.
This isn't to say there is a definitely going to be a bid from Sinochem, but it does show the seriousness to China of losing the resource to a major competitor.
China is buying stakes in companies, and entire companies, in an effort to prepare for the tremendous demand in food and raw materials the country will experience in the near future.
Potash has said in the past that they've held talks with Sinochem, but it's hard to know if it's a negotiation tactic or serious overtures.
Either way, there can be no doubt China in general is very interested in Potash Corp., and Sinochem is one of the stronger companies they have to bid for them.
One problem is a bidding war could start, and it would depend on how serious BHP Billiton is in securing Potash and its assets as to how high they could go.
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