Potash Corp Fight Continues

Potash Corporation -PCorp

Potash Corp is the largest potash producers in the world and the market is starting to heat up. Recently, rumours of a potential take-over have flared up in which multiple buyers were interested in this gem of a fertilizer company which is estimated at about $39 billion.

Potash is trying to stave off the hostile bid from BHP which the company feels that it is being undervalued. Currently Sinochem has dropped out of the running to purchase Potash Corp and right now there's a fight going on between the board at Potash and BHP.

Other mining companies have done similar deals in the fertilizer space like Brazil's VALE and Bunge Corp. Fertilizers are more of a stable commodity in that its price is not determined by futures like copper, gold, etc. but more of demand.

The board of Potash Corp have been rounding up and holding talks in trying to block an undervalued bid from BHP and the fight is continuing. Currently, the offer from BHP evaluates the company at $39 Billion US.

With the recent recession behind us, fertilizer companies have seen the price rise from the low $250/ton, but is far from the $1000/ton that fertilizer companies were receiving before the recession hit. The drama will continue in the courtrooms as Potash's board of directors is trying to stop the takeover from BHP.

To read up more on the courtroom battle you can read the information from Potash Corp's website.