Canada’s Competition Bureau will put up no reasons why Potash and Agrium shouldn’t be joined into Nutrien. The merger was first announced on September 12, 2016 and would create the “largest crop nutrient company in the world and 3rd largest natural resource company in Canada”, with estimated global turnover of US$20.6 billion.
The federal antitrust regulator on Monday, September 11, issued a “no action” letter on the all-stock merger-of-equals that Saskatoon’s PotashCorp and Calgary’s Agrium proposed in September last year. The two companies, when merged, are to be headquartered in Saskatoon under the name Nutrien.
A “no action” position means the bureau doesn’t intend to impose any conditions, require either of the companies to shed any assets relevant to the Canadian fertilizer market, or otherwise challenge the deal.
The bureau said Monday it had consulted stakeholders in the lead-up to its decision, including the two companies’ customers, competitors, industry groups and government. Several farm groups said last year they would be concerned about the possible loss of pricing power to such a merger.
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