Photo by: Reuters
VANCOUVER (miningweekly.com) – Shareholders of PotashCorp of Saskatchewan and Agrium have given their overwhelming support for a merger that is set to create a new $36-billion player.
In a special meeting held on Thursday, more than 99% of voting shareholders were in favour of the deal.
Agrium stated that it too had received overwhelming approval from its shareholders, 98% of voting shareholders being in favour of the merger.
The deal is expected to close in mid-2017.
PotashCorp shareholders will own 52% of the new company, with Agrium shareholders owning the balance.
Agrium CEO Chuck Magro will be CEO of the merged company. PotashCorp CEO Jochen Tilk will become executive chairperson.
PotashCorp is the world's biggest crop nutrient company by capacity, and Agrium is North America's largest farm retailer.
The combined company would be dominant in North America, controlling nearly two-thirds of potash capacity, 30% of phosphate production capability and 29% of nitrogen capacity.
The tie-up comes amid fertiliser companies' profits falling due to excessive supply and weak demand.