Updating Agrium Inc. and Potash Corp. of Saskatchewan

Article Excerpt

AGRIUM INC. $118 (www.agrium.com) will merge with rival fertilizer producer POTASH CORP. OF SASKATCHEWAN $21 (www.potashcorp.com). The merger will help them better cope with weak fertilizer demand and prices. They will also gain from combining storage facilities and other overlapping operations. Potash Corp. investors 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. shareholders will own 52% of the firm, and Agrium investors will own 48%. The new firm will pay an annual dividend equal to Agrium’s current payout of $3.50 U.S. a share. Agrium and Potash Corp. investors will vote on the deal at separate meetings on November 3, 2016. We recommend all shareholders vote in favour of the merger. The deal requires two-thirds approval by the shareholders of each company. If regulators also approve, the two companies should complete the transaction in mid-2017. Both Agrium and Potash Corp. are holds. holds…