💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

BRIEF-Agrium and PotashCorp to combine in merger of equals

Published 2016-09-12, 06:22 a/m
© Reuters.  BRIEF-Agrium and PotashCorp to combine in merger of equals
BARC
-
AGU
-
MS
-

Sept 12 (Reuters) - Agrium Inc AGU.TO

* Agrium and PotashCorp to combine in merger of equals to create a world-Class integrated global supplier of crop inputs

* New company to be named prior to transaction's closing

* Registered head office in Saskatoon, with Canadian corporate offices in both Calgary and Saskatoon

* PotashCorp shareholders will receive 0.400 common shares of new company for each common share of PotashCorp they own

* Agrium shareholders will receive 2.230 common shares of new company for each common share of Agrium they own

* Says Jochen Tilk will serve as executive chairman, and chuck magro will serve as chief executive officer

* Upon closing of transaction, Jochen Tilk will serve as executive chairman, and Chuck Magro will serve as chief executive officer

* PotashCorp shareholders will own about 52 percent of new co, Agrium shareholders will own about 48 percent on fully diluted basis

* On a 2015 pro forma basis, new company would have had net revenue of approximately us$20.6 billion and EBITDA of us$4.7 billion before synergies

* New company's board of directors will have equal representation

* Morgan Stanley & Co LLC (NYSE:MS) is serving as joint financial advisor to Agrium and PotashCorp

* Agrium inc says combination of both companies expected to generate up to US$500 million of annual operating synergies

* Synergies imply value creation for combined enterprise of up to us$5 billion, or a 20 percent increase above combined market capitalizations on august 29, 2016

* BofA Merrill lynch and RBC capital markets are serving as financial advisors to PotashCorp

* Agrium Inc says new company will remain committed to Canpotex

* Barclays (LON:BARC) capital inc and CIBC capital markets are serving as financial advisors

* Transaction will be implemented by way of a plan of arrangement under Canada business corporations act; expected to close during mid-2017 Source text for Eikon: Further company coverage: AGU.TO

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.