Issue 25 – The Marriage is Approaching


Issue 25 – The Marriage is Approaching

Potash Corp (TSX:POT) and Agrium (TSX:AGU) announced that the combined company will be called Nutrien. We are expecting the marriage to be finalized in the third quarter of this year. Once combined, Nutrien will be the global leader in reliable, low-cost crop nutrient production, combined with the largest agricultural retail-distribution network in the world. We are not expecting any recovery in fertilizer prices in the short-term. The attraction of the combined company comes from the potential synergies and future free cash flow growth. Even if fertilizer prices are flat, we are expecting free cash flow to grow by 40% in the next 4 years as synergies are achieved. Management has indicated that it expects approximately $450 million of synergies to be created.

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