Potash Corporation of Saskatchewan Inc. (PotashCorp) (TSX: POT) (NYSE: POT) and Agrium Inc. (TSX: AGU) (NYSE: AGU) have announced that the Canadian Competition Bureau (“CCB”) has granted unconditional regulatory approval for the proposed merger of equals by issuing a no-action letter.
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.
Upon closing the merger transaction, the new company will be named Nutrien. As the largest global provider of crop inputs and services, Nutrien will play a critical role in “Feeding the Future” by helping growers to increase food production in a sustainable manner.
Additional information on the merger between Agrium and PotashCorp can be found at the following website http://www.worldclasscropinputsupplier.com/. Information about Agrium and PotashCorp can be found under their respective corporate profiles on SEDAR at www.sedar.com or on EDGAR at www.sec.gov, respective websites at www.agrium.com and www.potashcorp.com, or by contacting the representatives below.