‘BUY IT & BREAK IT UP’ ‘BUY IT & BREAK IT UP’
SPECULATION MOUNTS AS BHP EXAMINES NUTRIEN
- National Post (Latest Edition)
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- Gabriel Friedman
If you have access, take a read.
Here is a quote from the article....
"Building a new standalone [potash] mine? Economically, it makes no sense in today’s world,” he said. “Our customers demand reliability of supply because weather doesn’t wait for anyone, so when farmers want to plant their crop, our products have to be on the farm, and that requires a massive infrastructure and investment beyond just a single mine.”
Nutrien, meanwhile, operates six potash mines, but never produces at full capacity because it has said the market is well-supplied. Those facts alone prompted some analysts to speculate BHP, which spent years on the fence about potash, could strike some kind of deal with Nutrien, whether that took the form of an acquisition, sale or partnership."