Topic: How To Invest

The Successful Investor Hotline – Friday, September 16, 2016

Article Excerpt

AGRIUM INC., $118.45, Toronto symbol AGU, and POTASH CORP. OF SASKATCHEWAN, $21.11, Toronto symbol POT, both fell on the news that they plan to merge operations. The deal will be an all-stock transaction. Agrium gets most of its revenue and earnings from selling seeds, fertilizers and other agricultural products to farmers through 1,400 stores in North America, South America and Australia. It also mines potash and produces nitrogen- and phosphate-based fertilizers. Potash Corp. is one of the world’s leading producers of potash fertilizer. Its other products include phosphate- and nitrogen-based (from natural gas) fertilizers. Under the terms of the agreement, Potash Corp. shareholders will receive 0.40 of a share in the combined company for each share they hold; Agrium investors will receive 2.23 shares for each of theirs. Potash Corp. investors will own 52% of the new company, and Agrium shareholders will own the remaining 48%. The new company will be the world’s largest publicly traded fertilizer producer, with annual revenue of roughly $20.6 billion…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.