DBRS Comments on Potash Corporation’s Acquisition Discussions with K+S

DBRS Limited (DBRS) today notes Potash Corporation of Saskatchewan Inc. (Potash or the Company), rated BBB (high) and R-1 (low) with Stable trends, has announced that it has made a private proposal to Germany-based agricultural and industrial commodities producer K+S Aktiengesellschaft (K+S) to negotiate the acquisition of K+S by Potash. K+S has acknowledged the overtures by Potash and is currently assessing its available options in a process that is ongoing.

K+S would be a sizeable target for Potash and would complement Potash’s existing business. DBRS expects that if any offer is made, the proposal will be subject to regulatory oversight.

No formal offer by Potash for K+S has been made and there is no certainty that any offer will ultimately be made or as to the terms on which such an offer might be made.

DBRS will continue to monitor the dialogue between Potash and K+ S and will further assess the potential impact on Potash’s ratings once the terms of any formal offer become available.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are Rating Companies in the Mining Industry (September 2014) and Rating Companies in the Industrial Products Industry (June 2015), which can be found on our website under Methodologies.