Agrium sells U.S. plants to ease Potash Corp merger concerns
07/11/2017 15:44
WINNIPEG, Manitoba, Nov 7 (Reuters) - Canadian fertilizer
producer and farm supplier Agrium Inc AGU.TO said on Tuesday
it will sell its Idaho phosphate production facility for $100
million to fertilizer company Itafos IFOS.V , to address
concerns of U.S. regulators about its merger with Potash Corp of
Saskatchewan POT.TO .
Separately, Agrium will sell its North Bend, Ohio, nitric
acid plant to a subsidiary of Trammo Inc for an undisclosed
price.
The combination of Agrium and Potash Corp is expected to
close by year-end, and requires U.S. approval. Agrium did not
specify what concerns U.S. regulators have, but Potash is
already one of the biggest U.S. phosphate producers.
Earlier on Tuesday, China's commerce ministry said it has
approved the merger on the condition that Potash divest certain
stakes in other companies. urn:newsml:reuters.com:*:nS6N1MZ01S
Agrium's U.S. listed shares fell 1.7 percent to $106.01.
Under the deal, Itafos gets Agrium's Conda, Idaho, phosphate
production plant and adjacent mineral rights. The deal includes
an agreement for Agrium to supply ammonia to the Conda facility
and buy the monoammonium phosphate it produces.
Agrium said it will take a $178 million impairment charge on
the Conda sale and retain its historic environmental
obligations.
Agrium's sales to both Itafos and Trammo are subject to
approval by the U.S. Federal Trade Commission, the company said.
The merger combines Potash Corp's fertilizer production
capacity, the world's largest, with Agrium's network of farm
supply stores, the biggest in the United States.
(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by
Jeffrey Benkoe)
((rod.nickel@thomsonreuters.com; 1 204 230 6043; Reuters
Messaging: rod.nickel.thomsonreuters.com@reuters.net; Twitter:
@ReutersWinnipeg))
Keywords: AGRIUM POTASHCORP/M&A