Two Canadian multinational agribusinesses, Potash Corp and Agrium, have completed their merger into one of the world’s largest fertiliser manufacturing and agricultural input distribution organisations. The move was first announced in September 2016.
The merged company, now trading as Nutrien with proforma revenues in excess of $20 billion, will be the world’s largest producer of potash, the second biggest nitrogen manufacturer and a significant player in the global phosphate market – it will produce and sell over 25 million tonnes of potash, nitrogen and phosphate products around the world each year. The business also has a network of some 1,500 former Agrium farm retail outlets, operating under the Crop Production Services (CPS) brand throughout most of the US and Canada as well as Argentina and Chile in South America. Agrium wholesales fertilisers in Europe from its office in Brussels.
Nutrien, 52% owned by PotashCorp shareholders and 48% by Agrium investors, will be headquartered at the former PotashCorp base in Saskatoon, while maintaining a “large corporate presence” at the former Agrium HQ at Calgary.
The merged company expects to make reduce its annual operating costs by some $500 million, mainly through integrating production facilities and distribution and retail networks; and making procurement savings. Half this total should be achieved by the end of 2018, with the whole synergy saving made by the end of 2019.
“We are proud to launch Nutrien, a company that will forge a unique position within the agriculture industry,” comments Nutrien president and chief executive Chuck Magro. “Our company will have an unmatched capability to respond to customer and market opportunities, focusing on innovation and growth across our retail and crop nutrient businesses. Importantly, we intend to draw upon the depth of our combined talent and best practices to build a new company that is stronger and better equipped to create value for all our stakeholders.”