The binding letter agreement provides that completion of the acquisition and establishment of the JV will be subject to various conditions precedent customary for a transaction of this type, including:
1. approval of the acquisition by SQM under the Foreign Acquisitions and Takeovers Act 1975;
2. Ministerial approval to the transfer of the relevant tenements;
3. no event or events occurring which will, in SQM’s opinion, have an adverse effect on the ability of the parties to proceed with the transaction or with the development of the project; and
4. any other necessary third-party approvals.
So from my reading, IF something has an adverse affect on the ability to proceed, SQM can walk away. IF Ministerial approval is not received then the deal will not go ahead. If these so called third parties (I have no clue who they are) do not approve, the deal will not go ahead.
A lot of what if's
KDR Price at posting:
54.5¢ Sentiment: None Disclosure: Held
