CCI invites comments on merger of Agrium and Potash Corporation of Saskatchewan
Published: Mar 30, 2017
By TIOLCORP News Service
NEW DELHI, MAR 30, 2017: THE Competition Commission of India is, currently, assessing a proposed combination for which a notice has been filed by Agrium, Inc and Potash Corporation of Saskatchewan Inc.
The Commission is of the prima facie opinion that the proposed combination is likely to have an appreciable adverse effect on competition and, accordingly, has directed Parties to publish details of the same to the knowledge or information of the public and persons affected or likely to be affected by the proposed combination.
Parties have already published the details of the proposed combination in all India editions of four newspapers viz., The Business Line, The Business Standard, The Indian Express and The Financial Express on 24.03.2017 and hosted the same on their websites.
As per the provisions of sub-section 3 of Section 29 of the Act, the Commission invites comments in writing, from any person(s) adversely affected or likely to be affected by the proposed combination.
Agrium, a Canadian corporation, is a producer of crop nutrients and direct-to-grower distributor of crop inputs, services, and solutions. PotashCorp, also a Canadian corporation, produces and supplies fertilizers and related products. Neither Agrium nor PotashCorp has any physical presence in India and none of these sell potash directly in India. However, both Agrium and PotashCorp are engaged in supply of potash in India through their joint venture company i.e. Canpotex. Canpotex is jointly held by Agrium, PotashCorp and Mosaic. In addition, PotashCorp also has minority interests in other companies (i.e. Israel Chemicals Limited or “ICL”, Sociedad Quimica y Minera de Chile or “SQM”, and Arab Potash Company or “APC”) which sell potash to Indian purchasers.
Through the proposed combination, Agrium and PotashCorp intend to merge their operations into a new entity i.e. New Parent. Accordingly, control of Canpotex, currently divided equally between its three shareholders viz, PotashCorp, Agrium, and Mosaic would, post transaction, be exercised by New Parent and Mosaic.
