China: MOFCOM approves fertilizer merger

Agrium and Potash Corporation of Saskatchewan say they expect their merger to close by year-end after receiving conditional approval from Chinese authorities.

In a joint news release, the two fertilizer companies said China’s ministry of commerce has approved the merger but requires the sale of PotashCorp’s minority holdings in Arab Potash Company and Sociedad Quimica y Minera de Chile within 18 months of closing and Israel Chemicals within nine months.

The Chinese approval also requires the conversion of PotashCorp’s equity interest in Sinofert Holdings to a passive investment prior to closing and its commitment that Canpotex will remain a reliable supplier of potash to China, they said.

The companies say they have now received clearance for the merger in Brazil, Canada, China, India and Russia, and expect to close the transaction by year-end after getting official US clearance.

The merger will create a combined company called Nutrien worth about US$36 billion.

Calgary-based Agrium said separately on Tuesday, November 7, it has agreed to sell two American assets to help win US Federal Trade Commission approval of the deal.

Full Content: Phoenix Star

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