The Canadian Competition Bureau (CCB) has granted unconditional regulatory approval for the proposed merger of equals between PotashCorp and Agrium by issuing a no-action letter, dated 11 September 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 US, China and India. The parties expect to close the transaction by the end of 4Q17.
Upon closing the merger, the new company will be named Nutrien.