UPDATE 1-Potash Corp hires banks to explore sale of SQM stake - paper

(Adds Potash corp response)

SANTIAGO, Sept 23 (Reuters) - Potash Corporation Of Saskatchewan Inc has hired Goldman Sachs and BofA Merrill Lynch to explore selling its 32 percent stake in Chile’s Sociedad Quimica Y Minera (SQM), Chilean paper La Tercera reported on Saturday.

Considering a stake sale comes as Potash Corp moves to merge with fellow fertilizer company Agrium Inc, La Tercera reported, without naming sources.

Agrium and Potash Corp said on Sept. 7 they were told by regulators in India and China that they need to divest Potash’s offshore interests for their merger to be approved.

Potash Corp spokesman Randy Burton said it would be inappropriate to speculate on divestitures or any other conditions and terms.

SQM, one of the world’s biggest lithium producers, did not respond to request for comment. (Reporting by Antonio de la Jara and Caroline Stauffer; Editing by Marguerita Choy)