Posted in | News | Mining Business | Potash

BHP Billiton Gains Strong Support from Banking Sector for Potash Corp Bid

The bid from Australian resources giant BHP Billiton bid for Potash Corp of Canada is being supported by major world banks. Out of BHP Billiton's US $45 billion syndicated note facilities for the Potash bid, 16% have been picked up by major Australian banks.

This loan facility is the largest one that has been arranged since the start of the global financial crisis. However the bid made for Potash Corp of Saskatchewan was oversubscribed. A good indicator of the trust of investors in the health of BHP Billiton's balance sheet.

Over the weekend the lead managers of the loan namely Santander, Barclays, BNP Paribas, JPMorgan and RBS confirmed that the loan facility had been divided evenly between 25 global banks. All of which have had previous business dealings with BHP Billiton. Each of these banks has agreed to a US $1.8 billion of potential funding. These banks include Commonwealth, ANZ, NAB and Westpac, the four major banks in Australia.

A potential competitor to the BHP bid is the Chinese Sinochem Group which is asking for government assistance in its bid for the Potash Group which could rival the hostile takeover bid placed by BHP Billiton. BHP has agreed to pay fees on the loan facility even if the bid for Potash Corp is unsuccessful. Shares in Potash reacted positively to the announcement.

Joel Scanlon

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    BHP Billiton Plc. (2019, March 19). BHP Billiton Gains Strong Support from Banking Sector for Potash Corp Bid. AZoMining. Retrieved on April 20, 2024 from https://www.azomining.com/News.aspx?newsID=346.

  • MLA

    BHP Billiton Plc. "BHP Billiton Gains Strong Support from Banking Sector for Potash Corp Bid". AZoMining. 20 April 2024. <https://www.azomining.com/News.aspx?newsID=346>.

  • Chicago

    BHP Billiton Plc. "BHP Billiton Gains Strong Support from Banking Sector for Potash Corp Bid". AZoMining. https://www.azomining.com/News.aspx?newsID=346. (accessed April 20, 2024).

  • Harvard

    BHP Billiton Plc. 2019. BHP Billiton Gains Strong Support from Banking Sector for Potash Corp Bid. AZoMining, viewed 20 April 2024, https://www.azomining.com/News.aspx?newsID=346.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.