With fertilizer demand and prices recovering, the industry can see strong merger and acquisition activity, according to an article in the Financial Times. One company mentioned as a possible player in the industry's consolidation is Israel Corp. (TASE: ILCO) unit Israel Chemicals Ltd. (TASE: ICL).
Executives quoted in the article say that mergers between leading producers are a "real possibility".
Potash prices rose to a high of around $1,000 per tonne in the summer of 2008 to a low of around $300 in 2009, as the global economic crisis hit demand. A recent recovery has raised prices back toward $400 per tonne as demand increased.
Other M&A candidates included K+S, Potash Corp, Mosaic, and Belaruskali.
Shares in Israel Chemicals are up 0.58% today, though they remain 3.9% lower in 2010. Israel Corp. shares, which have risen 7.1% so far in 2010, are up 0.27% today.
Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2010
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