China 'paying close attention' to BHP's Potash bid

China is closely watching Australia's BHP's $US38.5 billion ($A41 billion) bid to buy Canadian fertiliser producer Potash, a government spokesman said on Wednesday. Beijing is believed to be uneasy about seeing BHP Billiton Ltd, a major iron ore supplier to Chinese steelmakers, gain control or Potash Corporation of Saskatchewan, expanding its presence in China's flow of imported commodities. "China is highly reliant on potash imports," said a Commerce Ministry spokesman, Yao Jian. "We will be paying close attention to this deal," he said.

"Of course, this is attracting attention from the world potash industry and also from Chinese industry," Yao said at a news briefing. Asked whether China has officially expressed concern to Canada, Yao said his ministry's anti-monopoly bureau told him, "We have had no official contact with them." Yao said Chinese anti-monopoly regulators would investigate the bid if they receive a formal application.

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