Tianqi buys Nutrien's SQM shares

On Monday morning Nutrien's more than 62mn shares in Chilean fertilizer and non-metallic group SQM were auctioned on the Santiago stock exchange. China's Tianqi Lithium was the only company that submitted an offer and bought all the shares for US$4.07bn.

It now holds 23.7% of the company. The selling broker was Banchile Corredores de Bolsa and the buyer broker was Larraín Vial stockbroker.

Ashley Ozols, Tianqui's business development manager said according to local newspaper Pulso that "it is very important to enter the unit and have a financial stake in SQM, especially because we are looking at long-term options in the lithium industry."

After 15 years, Nutrien will leave SQM, while with the shares, Tianqi also bought the right to select three board directors and influence the company's strategic decisions.

Rocky Road

This operation has not been problem-free. SQM and Julio Ponce Lerou objected to an agreement the economic prosecutor (FNE) and Tianqi struck before the antitrust tribunal (TDLC). The deal involves limiting Tianqi's access to commercially sensitive information and outlines measures to mitigate risks.

These include banning Tianqi directors, executives or employees from sitting on SQM's board. Tianqi directors also may not participate in committees and in management or decision-making bodies related to SQM's lithium business, and cannot request access to commercially sensitive information from SQM.

The conflict even escalated to the constitutional court, which nonetheless later gave the green light to the FNE-Tianqi deal.