Between Potash and Agrium
Merger creates largest fertilizer producer
Canadian fertilizer producers Potash and Agrium will merge on January 1, 2018. This creates the world's largest fertilizer producer. The company will also be given a new name: Nutrien. That reports De Tijd.
The merger is not only a concern for fellow sector members, but also for farmers. Nutrien produces 30 million tons of fertilizers per year and has no fewer than 1.400 production locations in the United States (US). With the merger, the company represents more than $20 billion in revenue and $4 billion in cash flow.
A challenge
This merger is a challenge for smaller European companies. In comparison, the Belgian company Tessenderlo also sells fertilizers in the US, but has only 15 production locations. This company had sales of $2016 billion in 1,59 (41% consists of fertilizers and animal feed). That is considerably less than the new Nutrien.
In addition, American farmers are afraid that Nutrien will abuse its dominant position. This could lead to skyrocketing prices.
Plans announced earlier
The merger was announced in September this year. However, they only recently received the green light from the US and Canadian competition authorities. The companies together have 20.000 employees (divided over 18 countries). The producers expect to save more than $500 million by merging.
Kimberly Baker
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