Fertilizer companies Agrium Inc and Potash Corp of Saskatchewan Inc said on Thursday they were told by regulators in India and China that they need to divest Potash’s offshore interests for their merger to be approved.
The all-stock merger, valued at $25 billion, was announced in September last year and will bring together Potash’s crop nutrient production capacity, the world’s largest, with Agrium’s farm retail network, North America’s biggest.
“Potash Corp has four offshore equity investments. There has been a request (to divest) three,” Agrium spokesman Richard Downey said.
The companies have not yet identified which offshore interests will be sold off, he said.
Both Potash and Agrium do not have a physical presence in India, but supply potash to the country through Canpotex Ltd, which they own with Mosaic Co.
The deal is now expected to close in the fourth quarter of 2017, the companies said.
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