VANCOUVER (miningweekly.com) – Merging potash firms Potash Corp of Saskatchewan and Agrium Inc say they have received an unconditional approval from the Canadian Competition Bureau (CCB) for their proposed merger of equals.
The transaction, billed as a “merger of equals”, which will see the creation of a new $36-billion entity, to be named Nutrien, is working its way through the regulatory review and approval process in several jurisdictions.
The CCB has granted unconditional regulatory approval for the proposed merger by issuing a ‘no-action’ letter on Monday.
The CCB concluded that the proposed transaction is not likely to lead to a substantial lessening or prevention of competition regarding potash fertiliser, phosphate fertilisers and nitric acid. It also 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 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 and the parties expect to close the transaction a little later than previously expected, by the end of the fourth quarter.