China 'paying close attention' to BHP-Potash deal

BEIJING — China is closely watching global miner BHP's $38.5 billion bid to buy Canadian fertilizer producer Potash, a government spokesman said Wednesday. Beijing is believed to be uneasy about seeing BHP Billiton Ltd., a major iron ore supplier to Chinese steelmakers, gain control or Potash Corp. of Saskatchewan, expanding its presence in China's flow of imported commodities. "China is highly reliant on potash imports," said a Commerce Ministry spokesman, Yao Jian. "We will be paying close attention to this deal," he said. "Of course, this is attracting attention from the world potash industry and also from Chinese industry," Yao said at a news briefing. Asked whether China has officially expressed concern to Canada, Yao said his ministry's anti-monopoly bureau told him, "we have had no official contact with them." Yao said Chinese anti-monopoly regulators would investigate the bid if they receive a formal application. Potash owns a 22 percent stake in Sinofert Holdings, Ltd., China's biggest potash producer and fertilizer importer. The head of a major Canadian pension fund said this month a Chinese investment fund is exploring a joint bid for Potash. Yao declined to say whether Sinofert, a unit of government-owned Sinopec, or China Petroleum & Chemical Corp., was involved in a possible bid. —AP