China's Sinochem and Vale Join Forces to Counter BHP's Hostile Takeover of Potash Corp

Strategic Insights -

China's Sinochem and Brazil's Vale have approached Potash Corp. of Saskatchewan Inc. as a potential countermeasure to BHP Billiton's hostile takeover bid, reported Bloomberg News. The development marks a significant move by Sinochem and Vale to protect their interests in the global fertilizer market. The talks between Sinochem, Vale, and Potash Corp.'s board are still in the initial stages, and there is no guarantee that a deal will be reached.

Key Takeaways:

  • Sinochem and Vale have made initial inquiries with Potash Corp.'s board about the possibility of future talks, according to an unnamed source.
  • Other companies have also approached Potash Corp.'s board, and talks might not materialize.
  • Sinochem's Li Qiang, head of the president's office, declined to comment on potential contact with Potash Corp.
  • Vale's Fatima Cristina and Potash's Bill Johnson also refused to comment on the matter.
  • The takeover bid by BHP Billiton is aimed at acquiring Potash Corp.'s valuable fertilizer assets.
  • The market has reacted to the news, with SmarTrend warning of a downtrend in BHP Billiton's stock price since August 17, 2010.
  • Potash Corp.'s stock price has seen an uptrend since July 13, 2010, according to SmarTrend data.

Statistics:

  • BHP Billiton's stock price has declined since August 17, 2010, according to SmarTrend.
  • Potash Corp.'s stock price has seen an uptrend since July 13, 2010, with a price of $94.07.
  • BHP Billiton's current stock price is $70.38 (as of August 16, 2010).

Sources:

  • Bloomberg News
  • Dow Jones Commodities News Select via Comtex
  • SmarTrend Alert (Comtex News Network, Inc.)
  • Bloomberg News story: http://www.bloomberg.com/news/2010-08-23/potash-corp-said-to-receive-inquiries-from-sinochem-vale-after-bhp-bid.html (published August 23, 2010)