Nutrien Emerges From Agrium, PotashCorp Merger
The company is the world’s largest producer of potash, with more than 22 million mt/y of capacity from six lower- cost mines in Saskatchewan.
Its phosphate products portfolio is the most diverse in the industry. The company has two large, integrated phosphate mining and processing facilities and five smaller upgrading plants in the United States. Its phosphate fertilizer plant in Alberta benefits from an in-market freight advantage to serve the local market.
Nutrien is the world’s third-largest nitrogen producer, with close to 8 million mt/y of gross ammonia product capacity and operations in five countries, including joint-venture assets.
Nutrien operates a global retail distribution network that includes more than 1,500 farm retail centers. The company has nearly 20,000 employees and operations and investments in 14 countries. Nutrien anticipates that the merger will generate $500 million in annual operating synergies, primarily from distribution and retail integration; production; optimization of selling, general, and administration expenses; and procurement savings. The company expects to achieve approximately $250 million of these synergies by the end of 2018 and to achieve the full annualized run rate by the end of 2019.
Nutrien’s board of directors has equal representation from Agrium and Potash- Corp. Jochen Tilk is the executive chair and Derek Pannell is the board’s independent Lead Director. Members of the senior leadership team include Chuck Magro, president and CEO; Wayne Brownlee, executive vice president and CFO; and Steve Douglas, executive vice president and CIO.
Regarding completion of the Agrium/ PotashCorp merger, Magro said, “We are proud to launch Nutrien, a company that will forge a unique position within the agriculture industry. 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.”
Nutrien common shares began trading on the Toronto and New York stock exchanges on January 2 under the ticker symbol NTR. Agrium and PotashCorp shares were delisted at the same time.