VANCOUVER (miningweekly.com) – The TSX-listed equity of freshly minted fertiliser producer, distributor and retailer Nutrien gained nearly 6% on Tuesday – its first trading day following closure of the transaction on New Year’s day.
The ‘merger of equals’ has created a new top-tiered fertiliser company with a total market capitalisation of about $36-billion, holding the largest crop nutrient production portfolio combined with a significant global retail distribution network that includes more than 1 500 farm retail centres.
Nutrien said on Tuesday it has just under 20 000 employees – and operations and investments in 14 countries.
“Today we are proud to launch Nutrien, a company that will forge a unique position within the agriculture industry. Our company will have an unmatched capability to respond to customer and market opportunities, focusing on innovation and growth across our retail and crop nutrient businesses. Importantly, we intend to draw upon the depth of our combined talent and best practices to build a new company that is stronger and better equipped to create value for all our stakeholders,” president and CEO Chuck Magro stated in a news release.
Nutrien common shares started trading on Tuesday morning on the TSX and NYSE under the ticker symbol ‘NTR’. Trading of Agrium and PotashCorp common shares was halted on the TSX and NYSE has been suspended.
The transaction saw PotashCorp shareholders receiving 0.4 common shares of Nutrien for each common share held, and Agrium shareholders received 2.23 common shares of Nutrien for each common share owned.
Nutrien has become the world’s largest crop nutrient and services provider, with expected sales of 25-million tonnes a year of potash, nitrogen, and phosphate products for agricultural, industrial and feed customers around the globe. It is the largest potash producer with about 22-million tonnes annual capacity in Canada, is the third-largest nitrogen supplier with nearly 11-million tonnes of sales a year, and also is the second largest North American producer of phosphates, with about three-million tonnes of product sold each year.
At market close, Nutrien's TSX-listed stock last changed hands at C$69 apiece.