September 8, 210 (Chinavestor) Sinochem International (SHA:600500), China's largest chemicals trader, has reportedly initiated talks with Singapore's sovereign wealth fund, Temasek, about making a joint bid for Potash Corp. of Saskatchewan (NYSE:POT), the world's largest fertilizer producer. Sources familiar with the matter said Sincohem (SHA:600500) has in fact approached Temasek, but that the fund has yet to make an official decision.
Temasek involvement might help Sinochem (SHA:600500) overcome potential political opposition in Canada to a Chinese-led bid for Potash (NYSE:POT), according to the Financial Times. Analysts have speculated that Canada's government will be reluctant to let a Chinese company acquire Potash (NYSE:POT).
Temasek, which manages $138 billion in assets, does hold some stakes in U.S.-listed firms, including Chesapeake Energy (NYSE:CHK). The Chinese government has reportedly urged Chinese companies to launch competing bids to BHP Billiton's (NYSE:BHP) $38.6 billion offer for Potash (NYSE:POT), but no official offer has been announced as of yet.