Shareholders support PotashCorp, Agrium merger

Published 7:30 pm Friday, November 4, 2016

The votes are in, and a majority of shareholders are behind PotashCorp’s merger with Agrium Inc.

At a special meeting Thursday, at which 59 percent (or 494 million shares) of PotashCorp’s shareholders were able to vote, 99 percent voted in favor of the merger, according to a press release.

Agrium also announced that it received the same kind of response from its shareholders, the release stated.

“Today’s vote demonstrates the strong support from shareholders for this merger and the opportunity to create a world-class integrated global supplier of crop inputs,” stated Jochen Tilk, president and chief executive officer of PotashCorp. “We expect to generate significant value for shareholders and new opportunities for employees, while also better serving customers with low-cost, high-value products and services.  We look forward to working with Agrium to realize the full value of our combination.”

PotashCorp, the largest crop-nutrient company in the world, officially announced the merger with the agriculture-product company Agrium on Sept. 12, estimating the deal would close sometime in 2017.

Randy Burton, director of public relations and communications at PotashCorp, said he did not have any further comments to give on the shareholders’ response.

This is no information on how the merger will affect PotashCorp’s phosphate mine in Aurora, and Ray McKeithan, director of public and governmental affairs, declined to comment and referred questions to corporate offices.

After the merger announcement in September, the companies’ stock appeared to react negatively to the news — both reporting monthly lows in stock prices.

However, officials said the stock prices did not completely coordinate with the merger and did not indicate a negative response.

After experiencing a three-month low of $15.81 on Oct. 17, PotashCorp’s stocks have since rebounded again, closing at $16.12 last night.

Both PotashCorp’s and Agrium’s corporate offices are based out of Canada.

PotashCorp’s Aurora location employs more than 800 employees.