Canada Producers Share Agribusiness Merger Fears

Dan General, Industry News Release

Farm groups in Canada are voicing concerns over the latest flurry of merger and acquisitions within the agribusiness industry. Just a day after a U.S. Senate committee held a hearing on the topic, the Calgary Herald reports farm groups in Canada have similar thoughts as U.S. farm groups. Bayer AG was the latest to join the trend in its announcement last week that Bayer would purchase Monsanto for $66 billion. Farm groups in Canada are in the process of gathering comments from farmers on mergers, including the Agrium-PotashCorp deal. That merger would create the world’s largest fertilizer company. A spokesperson for the Alberta Wheat Commission said “we aren’t opposed to mergers in general,” but says too much concentration of ownership could lead to less healthy competition. Canola-based associations have already voiced concerns over the Bayer-Monsanto deal, as the two companies currently control more than 90 percent of the herbicide-tolerant canola trait business. The Alberta Canola Producers Commission says farmers are concerned with potential input cost increases and that a merger may diminish the incentive for future innovation.

From the National Association of Farm Broadcasting news service.

From: Agrium

Merger of Equals with PotashCorp

Agrium and PotashCorp to Combine in Merger of Equals to Create a World-Class Integrated Global Supplier of Crop Inputs

  • Largest Crop Nutrient Company in the World and 3rd Largest Natural Resource Company in Canada
  • Preeminent, Low-Cost Producer of Potash and High-Quality Nitrogen and Phosphate Integrated with Leading Global Retail Distribution Platform
  • New Company Better Positioned to Serve Customers with Low-Cost, High-Value Products and Services, with Continued Emphasis on Efficiency and Innovation
  • Expected to Generate up to US$500 Million of Annual Operating Synergies
  • Strong Pro Forma Balance Sheet with Substantial Free Cash Flow to Provide Flexibility to Return Excess Capital to Shareholders and Invest in Growth, While Maintaining Strong Credit Ratings
  • Will Have Two Canadian Corporate Offices, One in Saskatoon and One in Calgary; Combined Workforce to Reflect Strengths and Capabilities of Both Companies; Committed to Customers and Local Communities

Please visit for information on the merger.