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Nutrien will auction its SQM shares next Monday and mark the end of the era

In recent years, the biggest business in the domestic market is the time and time to come true.

Yesterday, at noon, the Canadian company Nutrien (Potash Corp. Continuation) registered Santiago Stock Exchange with more than 62 million shares in the S-share SQM series, accounting for almost 24% of its ownership. And this led to the operation on Monday, December 3, at noon. 9:15, which will take place at the main stock market in the country.

This package is to be purchased by China's Tianqi, which marks the turning point: Nutrien will leave SQM's property after 15 years in which he appointed members of the board and took part in the company's decision-making process and moved into an Asian company.

The deal, which will be run by Banchile Corredores de Bolsa, will have a minimum bid of US $ 65 per share, so the estimated amount will be $ 4,066 million.

Thus, if there is no surprise, this activity that has marked controversy will be sealed.

Compliance program

At the beginning of October, the TDLC approved an agreement between the National Public Prosecutor's Office (FNE) and Tianqi to enter SQM, and new talks began.

According to a PULSO statement released in October, it is a project under which China and Chile develop a so-called compliance program, consisting of the compliance protocol that Tianqi has agreed with the FNE, which seeks to curb unlawful coordination between directors. from both companies.

One of the most important details to be protected is the potential for unlawful exchange of information on the lithium market, where both companies are the largest players in the world.

So, let's say that the sources who know the process are preparing for the following year: In April 2019, SQM will host three directors named Tianqi, which will give the Chinese a 60-day deadline for submitting a proposal to a Chilean mining company.

The process is described by experts as "significant" and even more important than the TDLC decision. It should be noted that this new step is mainly addressed at the level of attorneys specializing in free competition and corporate law.

In this context, commentary on the sources, the Pampa Group, representing Julio Ponce's interests controlling SQM through cascade companies, could thus push from his point of view to improve the terms of the agreement that allowed Tianqi SQM to enter.

Battle History

An agreement between Nutrien and Tianqi was signed in May this year, with which it will acquire the first SQM membership.

The following month, FNE announced the launch of an investigation to assess the potential impact of free competition that this operation could have. This is after complaints filed by Corfo and Senator Alejandro Guillier.

In this way, the transaction was frozen until the investigation was extended. In parallel with the end of August, FNE announced that it reached out-of-court settlement with Tianqi, where it has taken various measures to mitigate the risks that may arise in the context of free competition.

The measures also include the fact that Tianqi will not elect directors, managers or employees of the company as part of the SQM Board of Directors and that neither the Chinese company nor its directors will be able to influence or interfere with Tianqi's interests or to harm the company's interests. Chile mining industry.

After that TDLC agreed to confirm it. At the same time, there were charges in September in which the Pampa Group opposed the agreement.

Despite this, the TDLC approved the agreement in early October, after which the Pampa Group returned to pay, but again their attempts were unsatisfied.

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