WICHITA, Kan. – An affiliate of German fertilizer company K+S AG has agreed to sell about one-quarter of the projected output from its Legacy potash mine in Saskatchewan to Koch Fertilizer of Wichita, Kan., for distribution to the U.S. market.
The companies say Koch will have exclusive rights to 453,000 metric tonnes a year of the output from Legacy, which is expected to produce about two million tonnes of potash annually by the end of 2017.
Financial terms weren’t disclosed by the companies, which issued a joint statement Tuesday.
The German company has been fending off a takeover attempt from Potash Corp of Saskatchewan.
READ MORE: Survey of retail shareholders shows most against PotashCorp offer: K+S
K+S said that PotashCorp’s offer undervalues its existing business and the contribution from the Legacy project in southern Saskatchewan.
PotashCorp’s takeover offer valued K+S at about 7.85 billion euros or about C$10.9 billion when it was first confirmed on June 25. But since then, the bid has grown to C$11.4 billion because of the falling Canadian dollar.
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