Yancoal: The Saskatchewan Potash Question

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Case

Reference no. 9B13MC124

Simplified Chinese language

Subject category: Strategy and General Management

Authors: George Peng (Ivey Business School, Western University); Paul W Beamish (Ivey Business School, Western University)

Published by: Ivey Publishing

Originally published in: 2013

Version: 2014-10-10

Length: 15 pages

Data source: Published sources

Topics: Diversification; Value creation; Cartel; Growth; Alternatives; Strategic choice; State-owned enterprise; China; Canada; Australia; General management/strategy; International

Share a link: https://casecent.re/p/125923

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Abstract

This is a Simplified Chinese version. In 2011, a major coal producer in China 'Yancoal' must make several decisions in terms of product and geographic diversification. One option is to retain its focus on the coal business. Here, it can acquire other coal assets in Australia to further increase its coal reserves. Another option is to acquire 19 potash-exploration permits in Saskatchewan, Canada. This represents an opportunity for both product diversification and further geographic diversification. Yancoal has to decide whether it should focus on the coal industry or pursue the potash opportunity as well.

Location:

China, Canada, Australia

Industry:

Mining, quarrying and oil and gas extraction

Size:

Large

Other setting(s):

2011