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Sinochem Said to Struggle for Support for Potash Bid

Sinochem Group, China’s largest fertilizer trader, may struggle to get state financial backing for a takeover of Potash Corp. of Saskatchewan Inc., making a deal unlikely, said two people with knowledge of the matter.

China’s government has indicated it would prefer Sinochem to finance any takeover without credit from state banks, which may put the transaction beyond the company’s reach, the people said, asking not to be identified because of confidentiality. Sinochem may still consider seeking a minority stake, a deal that would be easier to fund, one person said.