Potash Miners Positioned for Takeover
Source: Potash Investing News, Leia Michele Toovey (7/7/10)
"Short-term pressure will remain."
Low prices and low sales volumes are bound to leave some miners to struggle, and this leaves them ripe for acquisitions. Takeover activity in the potash market has heated up since the economy plunged into a recession.
According to Investment research specialist Fundamental Research Corp (FRC), the recent acquisitions have increased the focus on potash projects by a number of majors as well as state-backed Chinese groups. FRC also noted that most of China's potash imports come from Canada, and Chinese state-run mining companies are also showing an interest in projects.