Israel: Potash Corp scraps takeover bid for Israel Chemicals;

Potash Corp. of Saskatchewan Inc., the world’s major fertilizer producer, scrapped a proposed takeover bid for Israel Chemicals Ltd. next opposition to the transaction from workers and Israeli politicians. “Presently is not the time to pursue this opportunity,” Saskatoon, Saskatchewan-based Potash Corp. said Thursday in its prime-quarter earnings statement.

“While we continue to believe that such a transaction would be of tremendous benefit to stakeholders of both companies and the National of Israel, there must be receptivity to foreign investment and certainty in the rules that govern such investment .”

The takeover would have given Potash Corp. control of the sixth-major potash producer and boosted its share of estimate world production capacity this year to about 27%, according data from fertilizer-industry data service Green Markets. It would as well have enabled the Canadian company to vie with Russian competitor OAO Uralkali, which according to data compiled by Bloomberg was the world’s biggest producer in 2011.

Israel’s proximity to Asia would give Potash Corp. an chance in selling to India, one of the world’s major importers, John Chu, a Toronto-based analyst at AltaCorp Capital Inc., said in an interview.

Israel Corp., which is controlled by billionaire Idan Ofer, has a 52% stake in Tel Aviv-based Israel Chemicals. The Israeli government can block takeover bids for the chemicals company using its so-called golden share.

Potash as well reported Thursday a 13% rise in prime-quarter profit on strong shipments, and said request will remain robust for the rest of the year.

The company’s net profit rose to $556 million, or 63 cents per share, from $491 million, or 56 cents per share, a year formerly.

The Saskatoon, Saskatchewan-based company said sales volumes increased 78% in the quarter from a year formerly.

“We had significant increase in our potash performance as world buyers returned to the market in earnest next taking a brief pause late in 2012,” Chief Executive Bill Doyle said.

The company said domestic shipments from North American potash producers rose 56%.

Potash Corp., Mosaic Co. of the U.S. and Calgary-based Agrium Inc. own Canpotex Ltd., which sells their potash exports. In a similar arrangement, Belarusian Potash Co. sells exports from Uralkali and Belarus’s Belaruskali. Potash Corp.’s acquisition of Israel Chemicals would have put additional than 70% of world production capacity in the hands of the two export groups, from about 66% presently, Chu said.

Potash helps crops withstand drought and strengthens roots. Potash Corp.’s major potash mines are in the Canadian province of Saskatchewan.