View Full Version : Taking over the World (which one is 'Pinkie'?)

George Jung
09-02-2010, 10:42 PM
One of our local papers has an ag editorialist, and his recent offering detailed an interest by an Australian company in buying up a very large Canadian potash producer. The inference was, this company is so large ( $210 billion, give or take) that their holding, plus this takeover, effectively gives them a monopolistic ability to dictate price. I googled the topic; here's an offering:

(Reuters) - While BHP Billiton is likely to ditch a potash cartel for market-based pricing if it wins control of Potash Corp, some China-based buyers worry the changes will be to their detriment.
Talk of a Chinese white knight to counter the Australian miner's $39 billion bid show the country fears a concentration of pricing power in the big miner more than the current Russia (http://www.reuters.com/places/russia)n-Canadian marketing cartel.

"As one of the biggest importers of potash, China does not want to see more concentration in this market. The same could apply to India which relies on imports for 100% of its potash consumption," said Emilien Mazo, an analyst with Louis Dreyfus Commodities.

These two countries may have good reasons to worry about such a deal, he said.

Potash buyers currently face a duopoly dominated by two companies; Canpotex, an export organization owned by Potash and two smaller producers, Agrium Inc and Mosaic Co; and Belarusion Potash Co (BPC) which sells material produced in Russia and Belarus.

Collectively, Canpotex and BPC control 70 percent of global potash exports, in the same way Brazil's Vale, and BHP and Rio control around two thirds of the seaborne iron ore business.

While some buyers welcome the idea that shaking up this cozy cartel could lower prices, China's fertilizer users aren't convinced.

"If BHP...buys Potash Corp., it will make the pricing system worse for consumers," an official with a Chinese compound fertilizer maker said.

He added his company would also not be happy if China's Sinochem bought Potash

09-02-2010, 10:57 PM
George there's worse things can happen to ya than working for an Aussie :D JayInOz

09-03-2010, 01:53 AM
No sickies being one.

Signed: Benevolent Dictator

09-03-2010, 12:23 PM
On is a genius the other's insane, they're laboratoy mice, their genes have been spliced . . .