China may probe BHP takeover of Potash
By Michael Wei and Lucy Hornby |
September 2, 2010, Thursday
|
Print Edition
Print Edition
CHINA may launch an anti-monopoly probe into BHP Billiton's US$39 billion bid for Canada's Potash Corp, the China Business News said yesterday, citing a source familiar with the matter.
China will also review the merger of two Russian potash firms - Uralkali and Silvinit - given the major impact the two deals would have on China, the newspaper cited the unnamed source as saying.
The report was another indicator that China, as the world's biggest importer of fertilizer, is wary of further concentration in the market, following BHP Billiton's launch of a hostile bid for Potash Corp last month.
But it was unclear what steps, if any, Chinese regulators could take in opposition to the bid.
BHP has said the deal only needs approval from regulators in Canada and the United States, where Potash Corp sells around half its production.
China buys around 7 percent of the output of Potash Corp, which controls around one-fifth of world production of the key crop nutrient. Potash demand in the country has been growing by around 5-8 percent a year, faster than other fertilizers.
BHP Billiton does not currently produce any potash but does have potash resources it could develop in the future, including the massive Jansen project in Canada. The mine would begin producing in 2016 at the earliest, if the company approves development in 2011.
China's largest fertilizer distributor, Sinofert Holdings Ltd, said last week that it was worried about the impact that a BHP deal would have but would not say if its parent, Sinochem, was planning a rival offer.
Government departments and Sinochem Group have held meetings recently to review the possible impact the two takeovers could have on China and about possible countermeasures, the source said.
BHP may have to submit paperwork on the deal to China's anti-monopoly regulators.
Under Chinese law, the nation's regulators have jurisdiction over a foreign merger if two of the parties each have over 400 million yuan (US$58.7 million) in sales in China in the last fiscal year and if their worldwide sales surpass 10 billion yuan.
China will also review the merger of two Russian potash firms - Uralkali and Silvinit - given the major impact the two deals would have on China, the newspaper cited the unnamed source as saying.
The report was another indicator that China, as the world's biggest importer of fertilizer, is wary of further concentration in the market, following BHP Billiton's launch of a hostile bid for Potash Corp last month.
But it was unclear what steps, if any, Chinese regulators could take in opposition to the bid.
BHP has said the deal only needs approval from regulators in Canada and the United States, where Potash Corp sells around half its production.
China buys around 7 percent of the output of Potash Corp, which controls around one-fifth of world production of the key crop nutrient. Potash demand in the country has been growing by around 5-8 percent a year, faster than other fertilizers.
BHP Billiton does not currently produce any potash but does have potash resources it could develop in the future, including the massive Jansen project in Canada. The mine would begin producing in 2016 at the earliest, if the company approves development in 2011.
China's largest fertilizer distributor, Sinofert Holdings Ltd, said last week that it was worried about the impact that a BHP deal would have but would not say if its parent, Sinochem, was planning a rival offer.
Government departments and Sinochem Group have held meetings recently to review the possible impact the two takeovers could have on China and about possible countermeasures, the source said.
BHP may have to submit paperwork on the deal to China's anti-monopoly regulators.
Under Chinese law, the nation's regulators have jurisdiction over a foreign merger if two of the parties each have over 400 million yuan (US$58.7 million) in sales in China in the last fiscal year and if their worldwide sales surpass 10 billion yuan.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
