As part of the rejection of BHP Billiton’s (BHP) acquisition proposal, Potash Corp (POT) released an interesting report about the fertilizer industry and its prospects. On the question of why a mining company could be interested in the fertilizer industry, it is worth remembering that this business is segmented in the three primary crop nutrients (nitrogen, phosphate and potash) and potash in particular is mined. Potash Corp controls 22% of the worldwide potash production capacity.
As side notes, Potash Corp is one of Mohinish Pabrai's largest holdings and it is interesting to see Chemical & Mining of Chile (SQM), one of my first investments, as part of the melodrama. SQM is one of several minority participations that, according to Potash Corp, BHP’s offer is not valuing at their true worth.
Disclosure: No position