It’s an interesting time in agriculture with Potash Corporation of Saskatchewan and Calgary-based Agrium sitting down to talk about a potential merger. If a deal were to go ahead, this merger would create an agriculture giant in the fertilizer industry in Canada with a major impact globally.
Paul martin is a director with Gensource Potash and says it will be interesting to see what comes out of the discussions.
"At the end of the day, if you believe in the theory of buy low, sell high, obviously Potash Corp and Agrium -- but Potash Corp particularly -- is much more lower valued than it was say three, four years ago," Martin says. "You think back to the BHP deal, that was about a $50 billion takeover, now the company is worth $17 billion. That's a huge change when you knock two-thirds of the value off the company. And when assets are cheap, you see interest in people buying them."
Source : Portageonline