The global fertilizer industry looks to the world’s biggest potash producer for guidance, but with
Potash Corp of Saskatchewan Inc turning up disappointing figures on Thursday, attention has turned to the continuing caution among buyers around the world.
The world’s largest mining company,
BHP Billiton Ltd (BHP:AX), which has been a rumoured suitor for months and has been toying with an estimated price of $40-billion, could well turn away to more interesting tidbits, given the current scenario.
BHP had said potash is “seen as an opportunity,” when asked whether the company would buy its way into the fertilizer industry or develop its own properties. Potash currently has a market value of US$ 28 billion.
But National Australia Bank Ltd issued a report suggesting that BHP’s credit rating would likely be downgraded if it bid for the Saskatoon-based company, saying it would be “a big bite” even for a large company such as BHP.
