Crop nutrient providers Potash Corporation of Saskatchewan Inc. (PotashCorp) and Agrium Inc. supplied an update on the status of the proposed merger of equals transaction.
The regulatory review and approval process has progressed in all remaining jurisdictions, according to their announcement. In Canada and the U.S., the parties are working with the Canadian Competition Bureau and the Federal Trade Commission to resolve final issues in superphosphoric acid and nitric acid.
The companies have also been informed that the Ministry of Commerce in China and, independently, the Competition Commission of India intend to condition their respective approvals of the proposed transaction upon the divestment of certain of PotashCorp's offshore minority ownership interests.
The remedies under consideration are not expected to affect the estimated $500 million of annual operating synergies. Both companies remain highly confident in consummating the merger of equals but now expect to close the transaction by the end of the fourth quarter of 2017.
Upon closing the merger transaction, the new company will be named Nutrien. As the largest global provider of crop inputs and services, Nutrien will play a critical role in "Feeding the Future" by helping growers increase food production in a sustainable manner.
Additional information on the merger between Agrium and PotashCorp can be found at www.worldclasscropinputsupplier.com.
PotashCorp is the world's largest crop nutrient company and plays an integral role in global food production. The company is the largest producer, by capacity, of potash and one of the largest producers of nitrogen and phosphate. It also produces products for animal nutrition and industrial uses.
Agrium is a major global producer and distributor of agricultural products, services and solutions. Agrium produces nitrogen, potash and phosphate fertilizers, with a combined wholesale nutrient capacity of approximately 11 million metric tons. It supplies products and services directly to growers, including crop nutrients, crop protection, seeds and agronomic and application services.