CADE approves purchase of Fertilizers slice Heringer by Potash

The Administrative Council for economic Defense (Cade) approved, without restrictions, the purchase of 9.5% of the capital stock of Fertilizer by PCS Sales, Heringer subsidiary of Canadian Potash Corporation. The deal was announced in March and involves about $ 55,7 million and a shareholder agreement which is classified as "restricted access" in the documents of the Cade.
The announcement of the agreement, Potash said the deal would allow a long-term commitment of supply of raw materials to the company. According to Cade, the operation does not entail damage to the competitive environment and even competitors Heringer, consulted during the process, pointed out that the business can bring problems.
According to opinion of Cade, the PCS Group will be paid strictly as status of Heringer, like any other shareholder, and will not have any special benefit in the Division of profits. "So, there would be no incentive for a hypothetical market closure for competitors of Heringer, as regards the supply of potassium, because the gains of PCS would be limited to its minority shareholding", says the document.
By the documents submitted in the process, has 10% of Heringer 20% of the national market of NPK, with the slice up the 40% depending on the State in question. The PCS already has 20% of the 30% share of the world market.