Will The TBA Fertilizer Company Ever Exist?
Potash Corp. and Agrium officially announced a merger agreement.
The merger of equals will provide tons of benefits to shareholders including a dominant market position in crop inputs and $500 million in synergies.
An investment in the merger deal assumes regulators will approve the top two players in the fertilizer segment forming a dominant industry player.
In a time period when numerous large scale mergers have been blocked by government regulators, the decision of Potash Corp. (NYSE:POT) and Agrium (NYSE:AGU) to go forward with a merger is interesting. Even more interesting is that a large amount of the merger presentation appeared to highlight the very benefit as having the largest scale by far in the crop input segment.
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