Agrium Inc. and Potash Corporation of Saskatchewan Inc. announced Monday that they have agreed to combine in a merger of equals.

Under the agreement, a new parent organization will be formed to own both companies. The new company, to be named prior to the transaction closing, will combine nitrogen and phosphate production assets with an agricultural retail network to create an integrated crop inputs platform.

PotashCorp President and Chief Executive Officer Jochen Tilk said, “Our merger creates a new premier Canadian-headquartered company that reflects our shared commitment to creating value and unlocking growth potential for shareholders. The integrated platform established through our combination will greatly benefit customers and suppliers, and support even greater career development opportunities for employees.  Our workforce and the communities in which we operate are critical to both PotashCorp and Agrium, and we intend to carry forward best practices from both companies in corporate social responsibility, including commitments to employees, operating communities and the environment.”

Agrium President and Chief Executive Officer Chuck Magro said, “This is a transformational merger that creates benefits and growth opportunities that neither company could achieve alone.  Combining our complementary assets will enable us to serve our customers more efficiently, deliver significant operating synergies and improve our cash flows to provide capital returns and invest in growth.”

Click here to read the full news release on Agrium.com 

Click here to view the Agrium/PotashCorp merger presentation