PotashCorp, Agrium agree merger of equals

CANADIAN fertiliser giants PotashCorp and Agrium have agreed a merger of equals to form the world’s largest crop nutrient company.

The new parent company, which will be named when the deal closes, is valued at US$36bn with PotashCorp shareholders owning 52% of the new company and Agrium shareholders the remaining 48%. It is set to have close to 20,000 employees.

Both companies say the deal will create a “low-cost producer of potash and high-quality nitrogen and phosphate”. However, as the new company would control a significant proportion of fertiliser production in North America, regulators must carefully scrutinise its pricing power before approving the deal.

Chuck Magro, CEO of Agrium, said: “This is a transformational merger that creates benefits and growth opportunities that neither company could achieve alone. Combining our complementary assets will enable us to serve our customers more efficiently.”

Margo will serve as CEO of the new company, while PotashCorp CEO, Jochen Tilk, will serve as executive chairman. The new company will be headquartered at the current location of PotashCorp’s headquarters in Saskatoon, Canada; Agrium’s current headquarters in Calgary will become a corporate office.