Chinese firms show interest in lithium producer SQM -Potash Corp CEO (updated)

Wealth Minerals

29/11/2017 15:03

(Adds details, background) 
    By Rod Nickel 
    Nov 29 (Reuters) - Chinese groups have shown "broad 
interest" in buying Potash Corp of Saskatchewan's  POT.TO  stake 
in Chilean lithium producer SQM  SQMa.SN , Potash Corp Chief 
Executive Jochen Tilk said on Wednesday. 
    Potash has agreed to divest its 32 percent stake in SQM, as 
well as minority stakes in ICL Israel Chemicals  ICL.TA  and 
Arab Potash Co  APOT.AM , to comply with regulators' concerns in 
China and India about its merger with Agrium Inc  AGU.TO .  
    "You can imagine the broad interest of potential bidders and 
actual bidders is coming from those who are interested in 
lithium as a metal and also producers of batteries or battery 
parts. And many of them are in China," Tilk said at a Citi 
investor conference in New York. 
    Tilk declined to identify interested parties or the number 
of bids Potash has received.  
    Lithium is a key component in building electric vehicles. 
China is the world's biggest consumer and producer of lithium 
products, Tilk said. 
    Rio Tinto  RIO.AX   RIO.L , Canada's Wealth Minerals Ltd 
 WML.V  and Chinese private equity firm GSR Capital are 
considering a bid for the SQM stake, banking sources told 
Reuters last week.  urn:newsml:reuters.com:*:nL8N1NR4FM 
    The Potash-Agrium merger should close by year-end, once the 
United States Federal Trade Commission grants its approval, Tilk 
said. 
 
 (Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by 
Susan Thomas and Phil Berlowitz) 
 ((rod.nickel@thomsonreuters.com; 1 204 230 6043; Reuters 
Messaging: rod.nickel.thomsonreuters.com@reuters.net; Twitter: 
@ReutersWinnipeg)) 
 
Keywords: SQM M&A/POTASHCORP