Israel to Weigh Detailed Potash Request on Proposed Takeover: Report
Israeli officials asked fertilizer producer Potash Corp. of Saskatchewan Inc. (POT.TO) to clarify its proposed acquisition of Israel Chemicals Ltd., the country's second-largest company by market value.
Officials will make recommendations on the bid after reviewing a detailed application to be submitted by Potash Corp., Finance Ministry Director General Doron Cohen said today in an e-mail. Bill Johnson, a Potash Corp. spokesman, declined to comment.
Potash Corp. has a 14% stake in Tel Aviv-based Israel Chemicals, according to data compiled by Bloomberg. Israel Chemicals is controlled by the Ofer family's Israel Corp. The Israeli government can block takeover bids using its so- called golden share.
The Canadian company's proposed offer is "not on the agenda," the Finance Ministry said yesterday in a statement. The ministry also said yesterday it has "professional reservations" about the transaction and the government "won't allow any deal that endangers or impairs the economic and environmental interests of the State of Israel and its citizens."
Prime Minister Benjamin Netanyahu said Oct. 31 that he'd met with Potash Corp. Chief Executive Officer Bill Doyle, and that talks about a sale to the Canadian company were continuing.
If Potash Corp. successfully acquires Israel Chemicals, which harvests potash from the Dead Sea, it would become the largest producer of its namesake crop nutrient with control of about 25% of global production capacity, according to data compiled by Bloomberg.
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