RE: RE: RE: Please be serious... Jonathan, respectfully, you are kidding yourself .
This bit is crucial.
The Chinese are not locked in at all.
They formed a separate company solely for this purpose. It is CBCHC that is on the line for any deal and not China Blue or Benewood holding.
Wpx is mentioning China Blue and Benewood so that it shines the best light on the deal. But make no mistake, the deal is ONLY between Wpx And CBCHC.
if CBCHC backs out of the deal, folds the company, there is no repercussions for China blue or Benewood.
They have thought this through from all angles. If POT CORP tried to buy Wpx, China Blue can walk away from the deal.
Its called limited liability. Only CBCHC is on the hook for anything.
Worse case scenario is that China blue and Benewood lose their $15m each.
This way they have a long dated option on some potash assets and can keep Canpotex on its toes for what is a pittance in monetary terms from the point of these companies balance sheets.
This is classic Machiavellian maneuvering.
"China BlueChemical Ltd. (“China Blue”) (3983: HK) and Benewood Holdings Corporation Limited (“Benewood”), through a joint venture company, CBC (Canada) Holding Corp. (“CBCHC”),
In addition, Western and CBCHC have agreed to an off-take term sheet under which CBCHC or a purchaser designated by it will enter into an off-take agreement for the purchase of the lesser of 30% or 1 million tonnes of potash annually from Western’s Milestone project for a 20 year term. The off-take agreement will automatically extend for five-year periods unless either party elects not to extend."
https://www.westernpotash.com/news/western-potash-corp-receives-strategic-investment-china-bluechemical-ltd-and-guoxin