Agrium Inc. and PotashCorp Collaborate to Create Agriculture Giant

Canada: PotashCrop, a Saskatchewan based leading fertilizer manufacturer, has announced plans to merge with Alberta based crop nutrient manufacture and supplier, that is Agrium Inc., in an equal partnership to create the world’s largest crop nutrient supplier enterprise with an investment of USD36 billion. The new company aims to establish an agriculture giant by serving crop nutrient to farmers and customers with highly efficient, innovative, low cost and high value products and is anticipated to generate a business worth around USD500 million annually. Strong pro forma balance sheet combined with substantial cash flow of the two companies would provide increased return of investments to the shareholders. The new venture would be the leading producer of potash and nitrogen fertilizer with operations in 18 countries across the world.

TechSci Research depicts that merger between Agrium Inc. and PotashCrop would result in the formation of an agricultural materials giant with a diversified product portfolio. The joint venture of two companies would be able to serve broader range of agriculture nutrients to their customers worldwide. The collaboration of the two leading companies would result in the formation of a global leader in the fertilizer industry.

According to the recently published report by TechSci Research, “Global Water Soluble Fertilizers Market, Forecast and Opportunities, 2011-2021”, the global market for water soluble fertilizers is projected to grow at a CAGR of more than 5% over the next five years, on account of growing demand for food grains, depleting water levels, shrinking availability of arable land, coupled with high efficiency and ease of usage of water soluble fertilizers as compared to conventional chemical fertilizers. Growing preference for water soluble fertilizers across the globe can be attributed to economical pricing of these fertilizers as compared to chemical fertilizers, coupled with requirement of low quantities of water and fertilizers while using water soluble fertilizers.