August 18, 2015 / 11:30 AM / 3 years ago

K+S says Legacy supply deal highlights independence

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.

K+S has rejected the bid as undervaluing the company but has left the door open to an improved offer. (Reporting by Andreas Kroener and Georgina Prodhan; Editing by Maria Sheahan)

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