The asking price of $30-32 billion for the Belarusian potash company Belaruskali is close to the market value. The conclusion can be made using data about preparations for selling the large Israeli company Israel Chemicals Ltd, BelTA has learned from the information available on the web portal TUT.BY.

Israel Chemicals Ltd has been in spotlight a lot lately. International potassium industry media report that the world’s largest potassium chloride manufacturer Potash Corp is in negotiations with the Israeli government on buying the Israeli company. Now the Canadian chemical giant owns 13.84% in the Israeli company. Several years ago the Canadian company was willing to buy out 100% of the shares but the Israeli government turned down the offer back then.

According to the news agency Bloomberg, the sum of the deal may reach $13.5 billion now.

The assessed value of the Israeli asset is very interesting for Belarus. The Israeli company’s manufacturing capacity is 6 million tonnes while Belaruskali boasts 10.3 million tonnes. The actual output of the Israeli company is only 4.4 million tonnes due to workers going on strikes and the high level of the finished goods inventory. But even relying on the designed output capacity and expecting an improvement in the global competition situation, the price of the asset is very close to Belaruskali’s price voiced by the Belarus President - $30-32 billion.

It means that $13.5 billion for 86% of the shares of the Israeli company with the output capacity of 6 million tonnes matches rather well the $30-32 billion price for the Belarusian company that many believe to be exorbitant. Once the market recovers, it will do even more so, TUT.BY concludes.

 

Belta