Potash ‘Oligopoly’ to Strengthen as BHP Eyes Entry

The world’s eight largest potash miners, whose market control already exceeds that of oil cartel OPEC, are poised to tighten their grip on prices of the crop fertilizer as proposed mergers consolidate sales channels.

BHP Billiton Ltd.’s $40 billion hostile bid for Canada’s Potash Corp. of Saskatchewan Inc. would bring the Australian miner into the fold of the world’s largest potash marketing agent, Canpotex. In Russia, takeovers under negotiation would raise the pricing power of the second-biggest trading group, Belarusian Potash Co., said Fertecon Ltd., a U.K.-based industry consultant and price monitor.