Sinochem offer for Potash Corp is now unlikely

SINOCHEM, China’s largest fertiliser company, may struggle to get state financial backing for a takeover of Canada’s Potash Corp, making a deal unlikely, it emerged last night.

China’s government has indicated it would prefer Sinochem to finance any takeover without credit from state banks, which is likely to put the transaction beyond the company’s reach.

Sinochem may still consider seeking a minority stake, a deal that would be easier to fund.
China’s Sinochem has been touted as the most likely company to come up with a competing bid to rival London-listed BHP Billiton’s $39bn (£24.6bn) hostile offer for Potash Corp. Sinochem could not be reached for immediate comment.