It seems that the $10.9-billion bid that Potash Corp. of Saskatchewan has made for K+S AG of Germany is aimed at maintaining its cartel hold on Saskatchewan's treasure trove of potash.
K+S says the bid is too low and points to more than $2 billion it has already spent to open its Legacy Project potash mine in Saskatchewan next year.
K+S might not participate in the export cartel with Potash Corp, Mosaic and Agrium, but even if it does, it would take a slice of the revenues and profits.
The Canadian cartel has been trying to restrain exports so prices will recover after Russia's Uralkali pulled out of a similar cartel with Belarusian Potash Co.
