Potash Corp & Agrium Merger Gets Regulatory Nod In Canada
Zacks Investment Research | Sep 11, 2017 09:27PM ET
Potash Corporation of Saskatchewan Inc. (NYSE:POT) and Agrium Inc. (NYSE:AGU) announced that they have been granted unconditional regulatory approval for their proposed merger of equals from the Canadian Competition Bureau (CCB), which issued a no-action letter dated Sep 11.
According to CCB, the proposed merger is unlikely to considerably lessen or prevent competition with respect to phosphate fertilizers, potash fertilizer and nitric acid. It has also found that global potash prices are correlated with the prices in Canada, and customers can source potash from multiple suppliers. The issuance of no-action letter satisfies the necessary closing conditions of the Canadian regulatory authorities in regards to the aforesaid transaction.
Both companies have previously obtained unconditional clearance for the merger in Russia and Brazil. At present, approval and regulatory review process is underway in the United States, China and India. The companies now expect the transaction to close by the end of fourth-quarter 2017, which was previously expected to be completed in the third quarter.
On Jun 21, Potash Corp. and Agrium announced that once their proposed merger transaction completes, the combined entity will be called Nutrien. It will play a critical role in "Feeding the Future" initiative, by acting as the largest global provider of crop services and inputs and help growers to increase sustainable food production.
Shares of Potash Corp.have moved up 8.3% in the last three months, modestly underperforming the Zacks Investment Research
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