Agrium-Potash Merger – the merger of fertilizer producers Agrium Inc. (TSE:AGU, Mkt cap 18.13B, P/E 18.12, Div/yield 1.14/3.60, EPS 7.01, Shares 138.18M) and Potash Corporation of Saskatchewan Inc (TSE:POT, Mkt cap 19.17B, P/E 29.82, Div/yield 0.13/2.34, EPS 0.76, Shares 839.64M) is a step closer after both companies’ shareholders voted in favor of the plan.
The proposed “merger of equals” was first announced on September 12, 2016, with the two companies saying that the merged group would be the largest crop nutrient company in the world and the third largest natural resource company in Canada.
PotashCorp shareholders will own approximately 52% of the combined company, with Agrium shareholders owning the remaining 48%.
In special shareholder meetings held on Thursday, the merger was supported by approximately 98% of the Agrium shares and voting options voted, and more than 99% of the PotashCorp shares voted.
“Today’s approval represents a key milestone in the process to combine our two companies and create a new world-class integrated global supplier of crop inputs and services,” commented Chuck Magro, president and CEO of Agrium. “In addition to generating compelling value for shareholders, the integrated platform established through this combination will create benefits for customers, suppliers, and employees of both companies. We look forward to realizing the upside potential ahead.”
Jochen Tilk, president and CEO of PotashCorp, added: “Together with Agrium, we will be even better positioned to grow and thrive in a highly-competitive global market with multiple paths for growth. We expect to generate significant value for shareholders and new opportunities for employees, while also better serving customers with low-cost, high-value products and services.”
The merger is expected to close mid-2017. It remains subject to various closing conditions, including regulatory clearance and final approval by the Canadian court.
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