Skip to main content

Agrium and PotashCorp to merge

Published by , Digital Assistant Editor
World Fertilizer,


Under the agreement, a new parent company will be formed to own both companies. PotashCorp shareholders will receive 0.400 common shares of the new company for each common share of PotashCorp they own, and Agrium shareholders will receive 2.230 common shares of the new company for each common share of Agrium they own.

Agrium Inc. and PotashCorp. have agreed to combine in a merger of equals to create a world-class integrated global supplier of crop inputs.

Under the agreement, a new parent company will be formed to own both companies. PotashCorp shareholders will receive 0.400 common shares of the new company for each common share of PotashCorp they own, and Agrium shareholders will receive 2.230 common shares respectively.

The new company will have approximately 20 000 employees and a pro forma enterprise value of US$36 billion, based on each company’s net debt as of 30 June 2016.

PotashCorp President and Chief Executive Officer Jochen Tilk, commented: “Our merger creates a new premier Canadian-headquartered company that reflects our shared commitment to creating value and unlocking growth potential for shareholders. The integrated platform established through our combination will greatly benefit customers and suppliers, and support even greater career development opportunities for employees. Our workforce and the communities in which we operate are critical to both PotashCorp and Agrium, and we intend to carry forward best practices from both companies in corporate social responsibility, including commitments to employees, operating communities and the environment.”

Agrium President and Chief Executive Officer, Chuck Magro, said: “This is a transformational merger that creates benefits and growth opportunities that neither company could achieve alone. Combining our complementary assets will enable us to serve our customers more efficiently, deliver significant operating synergies and improve our cash flows to provide capital returns and invest in growth.”

Read the article online at: https://www.worldfertilizer.com/project-news/13092016/agrium-and-potashcorp-to-merge/

You might also like

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

Potash Corp news Agrium news