China sovereign wealth fund takes 12.5% stake in potash producer

|By:, SA News Editor

China Investment Corporation is now the second largest shareholder in Uralkali (URALL.PK), the potash producer whose exit from one of the world's two potash cartels sparked fears of a price war and triggered a steep sell-off in the chemical's price earlier this year.

The move by China's sovereign wealth fund to convert its bond holdings into a 12.5% equity stake "is part of [a] broader move to diversify its investments away from industrial commodities," FT says.