CORRECTED-UPDATE 1-K+S says Legacy supply deal highlights independence

Tue Aug 18, 2015 5:06pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Corrects name of analyst in paragraph 8)

* K+S agrees supply deal with Koch for 1/4 of Legacy's capacity

* K+S is trying to fend off 7.9 bln euro bid from Potash

* Analyst sees deal as negative for K+S value

FRANKFURT, Aug 18 (Reuters) - Germany's K+S signed a supply deal for potash fertiliser from its Legacy mine in Canada, saying the agreement strengthened its position as an independent supplier as it battles an unwanted takeover bid from Canada's Potash.

The salt and fertiliser producer said it had agreed an exclusive deal to supply Koch Fertilizer with 500,000 tonnes per year of granular potash for Koch's U.S. customers, representing about a quarter of the mine's capacity.

"This relationship highlights our position as a reliable and independent supplier in the market," K+S executive board member Andreas Radmacher said in a statement.

It said it would not provide further details of the deal.

The Legacy mine K+S is building in the prairies of western Canada will be the first built from scratch in the oversupplied global potash industry in almost 40 years and is thought to be a motivator of Potash's 7.9 billion euro bid.   Continued...