CALGARY – The friendly merger of PotashCorp and Agrium Inc. is now expected to close several months later than the previous target date due to concerns raised by regulatory bodies in four countries.
The two Canadian fertilizer producers say they have made progress on the approval process in all jurisdictions but the deal won’t close until the end of this year’s fourth quarter, rather than by the end of the third quarter as previously anticipated.
Among other things, authorities in China and India have independently informed the companies that they intend to require the divestment of certain minority interests owned by PotashCorp.
The Canadian Competition Bureau and the U.S.Federal Trade Commission also want to resolve issues surrounding superphosphoric acid and nitric acid.
PotashCorp and Agrium say the proposed remedies aren’t expected to affect the improved operational efficiencies anticipated from their combination to create a larger global supplier of crop inputs and agricultural services, to be called Nutrien.
They’ve have said that the merged companies can achieve $500-million of annual operating synergies.