BHP Bid, Russian Takeovers Show Potash Bottomed, Fertecon Says

BHP Billiton Ltd.’s $40 billion bid for Potash Corp. of Saskatchewan Inc. and acquisitions in the Russian industry signal the potash market bottomed after prices slumped more than 50 percent, consultant Fertecon Ltd. said.

Potash Corp. has about 20 percent of global output capacity of the commodity, one of the three main fertilizer ingredients. A potential combination of Russia’s OAO Silvinit and OAO Uralkali would manage about 16 percent of capacity, according to Salman Partners Inc. Saskatchewan potash prices fell to $359 a metric ton in the first quarter, from $774 a year earlier.