With $4.1 billion at stake, Nutrien waits on Chilean court to rule on 'Hail Mary' lawsuit - lithium ion batteries for sale

Saskatchewan-
Keane Nutrition Co. , Ltd.
Earlier this month, the antitrust agency was persuaded to sign a $4 deal.
1 billion to sell its stake in lithium producers in South America, but now the giant potash company is working with a strong businessman: former son-in-
The law of the late Chilean dictator Pinochet.
Julio ponse is a billionaire and his fatherin-
Earlier Chilean law had filed a lawsuit asking for more time to review Nutrien's $4.
Quedad quimica y Minera de sale in Chile sells 1 billion to Chinese buyers.
Some analysts believe that if the lawsuit delays enough sales time, Nutrien may be forced to abandon Chinese buyers and sell its stake in SQM in the open market --
Up to US $1 billion is less than the original price.
This situation may change the perception of foreign companies that regard Chile as the place where they operate, and indicate that while globalization opens up new markets for Canadian companies, it also poses new risks.
"We do believe that foreign companies will be interested in following the outcome of this case," said will Tigley, spokeswoman for Nutrien . ".
Nutrien was founded earlier this year, when two of Canada's largest potash companies, Ethereum Inc.
And potash company
In the province of SA, a total of $25billion deal.
The merger created the world's largest potash and nitrogen fertilizer companies and immediately attracted the attention of global antitrust regulators worried about their size and the potential to control the market.
As a condition of the deal, the antitrust regulator asked Nutrien to sell its stake in some companies, including its 32 stake in SQM, the world's largest producer of lithium and the large producer of potash.
Some regulators, including India
This is an important nutrition market, analysts say.
According to the company, the deadline for all such sales required to complete the merger is also set for May 2019.
With the passage of time, Nutrien encountered many obstacles.
The company sold its stake in the open market for $1 billion, but still holds a 24 stake in the company.
On last May, China Tianqi Lithium Industry Co. , Ltd.
Agreed to buy the shares for $4. 07 billion.
Since then, the New York Stock Exchange
The stock price of the listed SQM fell by 28.
From around $58 to $41. As of Friday 43.
John Chu, analyst at Laurenson bank securities
He said the new offer was "not so profitable ".
"Obviously, they may not get the same price that Tianqi offers," he said . " He notes that while Nutrien can find other buyers, it may also be forced to sell shares in the open market.
Chu and other analysts estimate that the price of Nutrien could fall by $1 billion.
Although the Chilean antitrust regulator and the court approved the sale of apocalypse this summer, the Chilean Constitutional Court blocked the sale earlier this month, at the same time, it is believed that the law on the ruling submitted by ponse passed his business, Papa group.
Ponce has held a square meter stake since the privatization of 1980 under the leadership of his late former father. in-law Pinochet.
He still controls about square meters, formerly the chairman of the company, but resigned in 2015 after being fined for market manipulation by Chilean regulators.
He did not respond to a request for comment to the Papa group.
Scotiabank analyst Ben Isaacson, who covers the company, said in a report last week that Ponce's lawsuit was "Hail Mary ".
Mr. Isaacson wrote that Mr. Pang claimed the deal was "actually done in secret ".
Tianqi has set up a joint venture with SQM's biggest rival, albcorp le Corp. in Australia.
Ponce's lawsuit said that Tianqi will receive a seat on the board of directors of Nutrien in SQM, so that it can obtain sensitive information and operational secrets of SQM, which can be passed on to albemar.
Isaacson questioned whether Ponce's lawsuit was "blatantly hypocritical," noting on 2014 that Ponce was "buying a stake in SQM . . . . . .
"We don't think he was worried at the time that SQM's sensitive information would fall into the apocalypse," Isaacson wrote . ".
In any case, the deal failed and now Tianqi is seeking to buy a 24-cent stake from Nutrien for $4.
1 billion, subject to review by the Chilean Constitutional Court.
Tian Qi, a Chinese buyer, said through a US buyer. S. -
Chile's antitrust regulator has spent five months reviewing the sale. On Oct.
The decision was approved by the Chilean antitrust court.
"Apocalypse's decision to invest in SQM is based on our belief in the independence of Chile's legal system and the opening of Chile's economy to foreign investment, including investment from China," the spokesman said . ". On Oct.
The Constitutional Court agreed to hear pousse's challenge to the decision of the antitrust court.
The lawsuit is scheduled to be accepted on Monday.
According to analysts who studied the matter, it could either refuse to accept the case or choose to hear further, but its decision could not be appealed to a higher court.
However, if the lawsuit is delayed, Nutrien is under pressure to close sales before the may20:9 deadline set by India's antitrust regulator.
"We expect to win court proceedings on Monday and close by the end of the year," said Nutrien spokesman Tigley . ".
In fact, Scotiabank's Isacson is optimistic that the risk of trading has increased from zero to 2 percentage points.
Chu of Laurenson Bank said that Nutrien will find a way to sell its remaining square meter stake by next May.
Nevertheless, he added that missing deadlines would have an unclear impact on Nutrien, which is already operating as a consolidated company.
"I never really thought about the consequences of doing this," Chu said. "I don't think Nutrien wants to know.