Potash Corporation of Saskatchewan Inc. and Agrium Inc. have announced that China’s Ministry of Commerce (MOFCOM) has approved their proposed merger of equals transaction.
MOFCOM’s approval will be conditioned on the parties’ commitment to divest PotashCorp’s minority shareholdings in Arab Potash Company and Sociedad Quimica y Minera de Chile S.A. within 18 months and Israel Chemicals Ltd. within 9 months from the closing of the merger transaction. The companies are permitted to consummate the merger prior to the divestments.
The approval is also conditioned on the commitment to convert PotashCorp’s equity interest in Sinofert Holdings Limited to a passive investment prior to the closing of the merger transaction and ensure that Canpotex remains a stable, reliable and dedicated supplier of potash to China.
The companies have now received clearance for the merger in Brazil, Canada, China, India, and Russia. The regulatory review and approval process continues in the U.S. and the parties expect to close the transaction by the end of the fourth quarter of 2017.
Upon closing the merger transaction, the new company will be named Nutrien. As the largest global provider of crop inputs and services, Nutrien will play a critical role in “Feeding the Future” by helping growers to increase food production in a sustainable manner.