Potash Corp. of Saskatchewan Inc. and Agrium Inc. on Sept. 11 announced that the Canadian Competition Bureau (CCB) has granted unconditional regulatory approval for the proposed merger of equals by issuing a no-action letter dated Sept. 11, 2017.
The CCB concluded that the proposed transaction is not likely to lead to a substantial lessening or prevention of competition with respect to potash fertilizer, phosphate fertilizers and nitric acid. The CCB found that global prices of potash are correlated with prices in Canada and that customers can source potash from multiple suppliers. The issuance of the no-action letter satisfies the Canadian regulatory condition of closing of the proposed merger of equals transaction.
The companies previously received unconditional clearance for the merger in both Brazil and Russia. The regulatory review and approval process continues in the U.S., China and India and the parties expect to close the transaction by the end of the fourth quarter of 2017. The U.S. has posed concerns over nitric acid and super phosphoric acid. India and China are interested in PotashCorp shedding offshore minority stakes (GM Sept. 8, p. 1).
Upon closing the merger transaction, the new company will be named Nutrien and will be the largest global provider of crop inputs and services.
Brazil’s Petrobras said Sept. 11 that it has initiated the disclosure phase to divest 100 percent of its assets in Araucária Nitrogenados SA (ANSA) and in the Nitrogen Fertilizer Unit III (UFN-III).
ANSA is a wholly-owned subsidiary of Petrobras, with a nitrogen fertilizer unit in operation, located in the State of Paraná, with a production capacity of 1,975 mt/d of urea and 1,303 mt/d of ammonia.
The UFN-III is a unit under construction, located in the State of Mato Grosso do Sul, with a physical advance of 81 percent. The plant will have urea production capacity of 3,600 mt/d and ammonia of 2,200 mt/d. The completion of the works will be the responsibility of the buyer.
More information is available at www.investidorpetrobras.com.br/en/press-releases.
Israel Chemical Ltd. shares fell sharply on Sunday, Sept. 10, on the Tel Aviv Stock Exchange in response to reports that Potash Corp. of Saskatchewan Inc. will have to sell its minority stake in ICL in order to obtain Chinese and Indian government approval for its planned merger with Agrium Inc. ICL share price partially recovered on Monday. PotashCorp has a 14 percent stake in ICL. The Canadian company also holds minority stakes in China’s Sinofert, Chile’s SQM and Jordan’s Arab Potash Co.
Israel Chemicals Ltd. is holding contacts with Britain’s Sirius Minerals on the possible sale of its U.K. operations, according to a report in the Calcalist economic daily. The report said that the sale price is likely to be around $150 to $200 million. ICL owns a potash mine in Boulby in northern England with a capacity of 800,000 mt/y. Due to the high cost of production ICL has in recent years reduced manpower at the mine from 1,000 to 500 and took a write off in 2016. According to the report, junior firm Sirius, which has a mine under development in the U.K., is interested in buying ICL’s U.K. operations due to the potential from the production of polysulfate. In November, ICL said that given current market conditions it had decided to accelerate the transition of its U.K. mine to polysulfate from potash. ICL said in response to the report that the company is studying various possibilities including cooperation, the sale or purchase of companies and the company would make an announcement if and when there is anything to report.
As of Saturday, Sept. 9, The Mosaic Co. said it was executing hurricane preparedness plans and planned to idle its Central Florida phosphate mines and partially idle its concentrate facilities, to facilitate efficient resumption of fertilizer production following the storm. It said its priority was to keep people safe and protect the environment during and after the storm. There was no update as of Sept. 11.
Mosaic also announced Sept. 9, a $100,000 contribution for disaster relief and emergency response efforts in Florida in advance of Hurricane Irma’s impact. Funds will support the American Red Cross and Feeding Florida – who each will receive $50,000.
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