PotashCorp, Agrium Merger Delayed; Divestments May Be Necessary
Potash Corp. of Saskatchewan Inc. and Agrium Inc. today provided an update on the status of the proposed merger of equals transaction. They now expect the merger to conclude by end of the fourth quarter, pushed back from the third quarter.
The two said the regulatory review and approval process has progressed in all remaining jurisdictions. In Canada and the US, the parties are working with the Canadian Competition Bureau and the Federal Trade Commission to resolve final issues in superphosphoric acid (SPA) and nitric acid.
The companies have also been informed that the Ministry of Commerce (MOFCOM) in China and, independently, the Competition Commission of India (CCI) intend to condition their respective approvals of the proposed transaction on the divestment of certain of PotashCorp’s offshore minority ownership interests.
The remedies under consideration are not expected to impact the estimated $500-million of annual operating synergies. Both companies remain highly confident in consummating the merger of equals.