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PotashCorp, Agrium receive final approval for merger

PotashCorp and Agrium will merge on Jan. 1, 2018 into a new company called Nutrien. Supplied

Potash Corporation of Saskatchewan Inc. (PotashCorp) (TSX:POT) and Agrium Inc. (TSX:AGU) have received their final regulatory approval to merge the two companies into a new company called Nutrien.

The United States Federal Trade Commission gave clearance to the merger on Wednesday.

READ MORE: China gives regulatory approval for merger of Agrium, PotashCorp

The companies said the transaction is expected to close on Jan. 1, 2018.

“This final clearance marks a significant milestone in bringing two industry leaders together,” Chuck Magro, president and CEO of Agrium, said in a release.

“Given our extensive integration planning work, we expect to move quickly upon closing to begin delivering on the many strategic benefits and synergy potential of this combination.”

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PotashCorp president and CEO Jochen Tilk said they are pleased to have cleared the final hurdle in the merger process.

“Nutrien will build upon the impressive legacies and best practices of both companies to create long-term value for all our stakeholders,” Tilk said in a statement.

READ MORE: PotashCorp, Agrium receive approval in India for merger

Trading of common shares in Nutrien is expected to start on Jan. 2, 2018 on both the Toronto Stock Exchange and the New York Stock Exchange.

Shares in the current companies are expected to be delisted at the same time.

The combined companies are expected to have an enterprise value of US$36 billion and they have previously stated they can achieve $500 million of annual operating synergies.

Nutrien’s head office will be located in Saskatoon, where PotashCorp is based, with a corporate office in Agrium’s home city of Calgary.

With files from The Canadian Press