NEW YORK - Canadian-based rivals Agrium Inc and Potash Corp said on Monday they had agreed to merge to create a $36-billion global crop fertilizer behemoth.
The new company will combine potash, nitrogen and phosphate production with a global distribution network, employing just under 20,000 people
The new company will combine potash, nitrogen and phosphate production with a global distribution network, employing just under 20,000 people, and is to generate $500 million in annual savings from their combined operations, a joint statement said.
The new company, which has not yet been named, will be based in Saskatoon, Canada and 52-percent owned by Potash Shareholders, with Agrium owners holding 48 percent. The merger will happen entirely through a stock swap with no cash changing hands.
The tie-up, which the companies called "a merger of equals", was unanimously approved by their respective boards, but still needs the green light from shareholders and regulators.
"This is a transformational merger that creates benefits and growth opportunities that neither company could achieve alone," Agrium CEO Chuck Magro said in the statement.