All Posts from December 27, 2017

PotashCorp/Agrium Merger Expected to Close Jan. 1; U.S. Gives Regulatory Clearance

Potash Corp. of Saskatchewan Inc. and Agrium Inc. announced on Dec. 27 that they have received clearance from the U.S. Federal Trade Commission and have now obtained all regulatory approvals required to close their proposed merger of equals transaction. The transaction is expected to close effective Jan. 1, 2018, and remains subject to customary closing conditions. The merged company will be named Nutrien.

“This final clearance marks a significant milestone in bringing two industry leaders together,” said Chuck Magro, president and CEO of Agrium. “Given our extensive integration planning work, we expect to move quickly upon closing to begin delivering on the many strategic benefits and synergy potential of this combination.”

“We are pleased to have received final regulatory clearance and look forward to the formation of Nutrien,” said Jochen Tilk, president and CEO of PotashCorp. “Nutrien will build upon the impressive legacies and best practices of both companies to create long-term value for all our stakeholders.”

With the closing of the transaction on Jan. 1, the common shares of Nutrien are expected to commence trading on the Toronto Stock Exchange (TSX) and the New York Stock Exchange under the ticker symbol “NTR” at the opening of market on Jan. 2, 2018. Trading of Agrium common shares and PotashCorp common shares is expected to be suspended at the opening of market on Jan. 2, and such shares will be delisted at the close of market on the same date.

Cash entitlements in lieu of fractional Nutrien common shares will be based on the trading price of the Nutrien common shares on the TSX on the first five days of trading on such exchange. Such entitlements will be delivered as soon as practicable thereafter to former Agrium and PotashCorp shareholders who have submitted their duly completed letters of transmittal and elections forms in accordance with the procedures described in the applicable letter of transmittal and election form.

Ag Retailers Launch CommoditAg Online Ordering Platform

A partnership of ag retailers and cooperatives including The Equity in Effingham, Ill., and Sunrise Cooperative in Norwalk, Ohio, on Dec. 26 announced the launch of CommoditAg LLC, a new online ordering platform for crop inputs including herbicides, fungicides, insecticides, adjuvants, and plant nutrition products.

CommoditAg said it offers “an extensive network of local warehouses offering high quality agriculture products at low prices direct to your farm,” with additional warehouses to be announced in the coming weeks. The company’s website at CommoditAg.com is live and accepting orders.

“Our companies are combining forces to give CommoditAg the best agriculture infrastructure and supply chain in the country,” the company’s website states. “Our joint passion for providing a great customer experience from our store doors to your farm gate is staying our number one priority as we add online ordering and delivery capabilities through CommoditAg.”

CommoditAg’s launch announcement includes a limited time offer of free delivery in Illinois, Indiana, Kansas, Ohio, and Wisconsin for orders over $5,000, and free shipping for a limited time in Missouri, Nebraska, South Dakota, and Minnesota for orders over $10,000. After the initial launch period, CommoditAg said it will offer free delivery within 50 miles of any participating warehouse location before March 15, 2018. Growers can also pick up their online orders at any of the company’s warehouse locations.

“CommoditAg will continue build its footprint across the U.S. providing convenient locations for growers who choose to purchase their crop protection and plant nutrition products online,” said Tim Bence, Chief Operating Officer of CommoditAg.

CommoditAg joins a growing list of companies offering online ordering for crop inputs. Current competitors in the e-commerce space for crop input sales include Farmers Business Network (FBN), which began in 2014, and the recently launched Agroy, which is based in Chicago.