The Potash Corporation, the world’s largest Potash producer, helps farmers grow more crops per acre by selling them potash, phosphates and nitrogen, which are key ingredients for fertilizer. In 2011, Potash has seen increasing demand for all three of its business segments, leading to record quarterly earnings.^[1] This increased demand is driven by rising gas prices, which leads to an increased demand for biofuels like ethanol and soybean oil.^[2] Similarly, the agricultural market has rebounded in 2010 and 2011, leading to greater demand for fertilizers and feed supplements. Furthermore, Potash and its industry competitors such as Mosaic Company (MOS) benefit from monopolistic pricing power as a result of high Barriers to entry and Economies of scale .^[3]

On August 17, 2010, Potash Corporation of Saskatchewan declined an unsolicited $38.6 billion cash offer from BHP Billiton (BHP) for the company.^[4] Potash Corp.'s board stated that BHP's offer did not reflect the strength and strategic importance of Potash Corporation's financial capabilities and does not take into consideration the growth that Potash's board sees at hand in the future.^[5] Speculation exists that Potash may be attempting to lure other buyers such as Rinto Tinto or SinoChem.^[5]

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