Sunday , May 16 2021

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

The biggest business in recent years on the local market has a day and time to materialize.

Yesterday at noon, the Canadian company Nutrien (a continuation of Potash Corp) registered on the Santiago stock market of more than 62 million AQ shares of SQM, representing nearly 24% of its ownership. And set the operation for Monday, December 3, at 9:15 am, to be held in the wheelchair on the main stock exchange in the country.

This package must be purchased by the Chinese Tianqi, which will mark a turning point: Nutrien will leave SQM ownership after 15 years, appointing board members and taking part in the company's decision-making and the Asian firm will enter its place.

The transaction, which will be led by Banchile Corredores de Bolsa, will have a minimum price of $ 65 per share, so the expected amount will be $ 4.066 million.

So, if there is no surprise, this operation, which is marked with controversy, will be sealed.

Compliance program

After the Free Trade Defense Competition (TDLC) approved an agreement between the Office of the National Economic Prosecutor's Office (FNB) and Tianki in early October to enter the second of the SKM's property, new bargaining began.

According to PULSE, published in October, this is the design that China and Chile are doing the so-called compliance program, which consists of an adjustment protocol that Tianki agreed with the FNB and which is trying to limit the risk of illegal coordination between directors. from both companies.

One of the most relevant details about protection is related to the potential unlawful exchange of information related to the lithium market, where the two companies are the biggest players in the world.

Thus, sources say who know about the process say they are ready for the next year: in April 2019 will be taken over by three executives called Tianqi in the SQM, after which the Chinese will have a 60 calendar day deadline to submit their proposal to the board of the Chilean mining company .

This process is qualified by experts as "substantive" and even more important than its own judgment on TDLL. It should be noted that this new step concerns mainly the level of lawyers specialized in free competition and corporate law.

In this context, a source commentary, the Pampa group, which represents the interests of Julio Ponce, who controls SMC through cascading companies, can push through this way of improving – from his point of view – the terms of the agreement that allowed the entry of Tianqi to SQM.

History of struggles

In May this year, an agreement was signed between Nutrien and Tianqi, through which the latter would have purchased the participation of the first in the SQM.

The following month, FNE announced the opening of the investigation to assess the possible impacts on free competition that an operation can bring. This, following complaints filed by Corfu and Senator Alejandro Gillier.

In this way, the transaction was frozen until the investigation was continued. In parallel, at the end of August, the FNN announced it had reached an out-of-court agreement with Tianqi, where it established various measures to mitigate the risks that could lead to free-competition operations.

The measures include that Tianqi will not choose directors, directors or employees of its company to be part of the SQM's board of directors, and that neither the Chinese company nor its directors will be able to influence or intervene in favor of Tianqi or to the detriment of interests the company. Chilean mining.

After that, the agreement was passed to TDLC for approval. In the middle of this, accusations were imposed in September, where the Pampa Group opposed the deal.

Despite this, the TDLC approved the agreement in early October, after which the Pampa group returned to the indictment, but again their attempts were frustrated.

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