China Sea Chemical bids for Belarusian potash fertilizer

When BHP Billiton stepped up its acquisition of Canadian Potash Corp., China Shipping began to find alternatives to target companies.

On September 15, a person familiar with the matter revealed to a financial reporter that currently China National Offshore Oil Corporation’s subsidiary, China Shipping Chemical, is negotiating with the potash giant Belarusian potash on the acquisition. The above-mentioned insiders did not disclose the specific amount and progress schedule of this acquisition.

The person familiar with the matter also stated that Canadian Potash Corp had previously negotiated acquisitions with China National Chemicals, but the settlement was not settled because the Canadian offer exceeded the Chinese bottom line.

In fact, the rumored market for the acquisition of Belarusian potash by CNOOC Chemical has never been cut off. In April this year, there was news that the two parties were negotiating a plan to sell shares, but they were later denied by the Russian side.

Then in June of this year, Belarusian First Deputy Prime Minister Shemashco made it clear that he intends to sell some of Belarusian potash shares. According to local Belarusian media reports at the time, Xiemashko hoped that the government hopes to raise about 6 to 7 billion U.S. dollars from the sale of approximately 25% of Belarusian potash fertilizer company.

The White Rose Potash Fertilizer Company is a large potash fertilizer company in the world and one of the major sources of imported potash fertilizer in China.

According to public information, the Belarusian state company owns 45% of Belarusian Potash Fertilizer (BPC), Ural Potash has 50% of BPC shares, and the remaining 5% is controlled by Belarusian Railway Company. BPC is the two companies' potash fertilizer export alliance companies. It has four potassium mines in the region of Soligorsk with a total capacity of 9 million tons of potassium chloride. In 2008, it produced 8.28 million tons of potassium chloride.