Agrium, PotashCorp shareholders overwhelmingly approve mega-merger
All-stock deal will create fertilizer company with market value of more than $30 billion; regulatory, court approvals still needed
CALGARY—Shareholders of Potash Corp. of Saskatchewan and Agrium Inc. have voted overwhelmingly in favour of an all-stock merger.
At separate special meetings Thursday, PotashCorp shareholders voted more than 99 per cent in favour of the deal while more than 98 per cent of Agrium shareholders voted for it.
The companies say the deal, announced in early September, should bring upwards of US$500 million in annual cost savings for the combined company with US$20.6 billion in expected net revenue.
If the deal goes through, PotashCorp shareholders will own about 52 per cent of the new company while Agrium shareholders will hold the remaining 48 per cent. The merger remains subject to a range of conditions, including regulatory and Canadian court approvals; the companies expect it to close in mid-2017.
The new company would be headquartered in PotashCorp’s hometown of Saskatoon while maintaining a corporate office in Calgary, where Agrium is based.
The merger brings together PotashCorp’s extensive fertilizer mining operations with Agrium’s global direct-to-farmer retail network.