September 12, 2016 / 10:22 AM / in a year

BRIEF-Agrium and PotashCorp to combine in merger of equals

Sept 12 (Reuters) - Agrium Inc

* 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 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 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:

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below