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PotashCorp, Agrium receive approval in India for merger

PotashCorp, Agrium have receive approval in India for merger of the two companies to proceed. File / Global News

PotashCorp (TSX:POT) and Agrium (TSX:AGU) have cleared another hurdle in the merger of the two companies.

An appellate court in India has approved a settlement between the parties and the Competition Commission of India to allow the merger to proceed.

READ MORE: Agrium, PotashCorp receive approval for merger from competition bureau

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As a condition of the merger, the parties will have to divest PotashCorp’s minority holdings in Arab Potash Corporation, Israel Chemicals, Ltd. and Sociedad Quimica y Minera de Chile S.A. within 18 months.

The merger can go ahead prior to the divestments.

PotashCorp and Agrium have already received unconditional clearance for the merger in Canada, Brazil and Russia.

READ MORE: PotashCorp temporarily cutting production at Allan, Lanigan mines

Regulatory approval is still needed from the U.S. and China, which the two companies expect to happen by the end of the fourth quarter of 2017.

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The merged companies will be known as Nutrien.

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