Canadian fertiliser firms Potash Corp of Saskatchewan and Agrium Inc agree to mega-merger

Francesca Washtell
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Inside Boulby Potash Mine
Potash increases the nutrient value of agricultural crops (Source: Getty)

Canada's Potash Corp of Saskatchewan and Agrium Inc are set to merge in a deal that will create one of the world's largest crop fertiliser companies with an enterprise value of around $36bn (£27bn).

The combination entity of Potash, which is the world's biggest crop nutrient company by capacity, and Agrium, the largest farm retailer in North America, will have nearly 20,000 employees and annual revenue of $20.6bn.

Potash investors will own around 52 per cent of the new company's stock, while Agrium's shareholders will own around 48 per cent.

Read more: You can't be Sirius? Shares sink on Potash mine costs

The merged group's new name will be announced before the deal closes, which is forecast for the middle of next year, and the company will be based in Potash's headquarters in Saskawatchen.

Agrium's head Chuck Magro will become chief executive of the new company and Potash chief exec Jochen Tilk will be executive chairman.