Potash Corp. and Agrium merge, create $36bn fertilizer giant
Canada’s Potash Corp. of Saskatchewan (TSX:POT) (NYSE: POT), the world’s largest producer of the fertilizer by capacity, and smaller rival Agrium (TSX:AGU) (NYSE: AGU) have agreed to an all-share merger, creating this way the world’s largest crop-nutrient supplier worth about $36 billion, including debt.
The move, the biggest Canadian merger since CNOOC Ltd. bought Nexen Energy ULC in 2013, will give Potash Corp. shareholders 52% of the new company, which has yet to be named, while Agrium investors will hold the rest, both firms said in joint statement.
Agrium chief executive officer, Chuck Magro, will assume as the boss of the combined group. Potash Corp. leader, Jochen Tilk, will in turn become executive chairman. The new company will be based in Saskatoon, Saskatchewan, the current location of Potash Corp.’s headquarters. Agrium is based in Calgary.
The combined firm will have nearly 20,000 employees and it is expected to generate up to $500 million of annual operating synergies, according to a new website created by Potash Corp and Agrium, which first revealed they were in preliminary discussions less than two weeks ago.