Global Fertilizer/Potash Stocks Are Breaking Out. Buy.

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

Potash Corp Of Saskatchewan / Event-Driven

On 30 August 2016, PotashCorp and Agrium Inc. confirmed that they are in merger talks. The combination of the two Canadian fertilizer companies could result in a giant market leader worth ~USD 30bn! The last few years have been a difficult period for fertilizer companies. Fertilizer prices have fallen significantly due to a slowing Chinese economy, weak farm income numbers since 2013 and the collapse of the Potash Cartel.A combination of PotashCorp and Agrium may provide some relief through cost reductions and a larger product offering. The transaction seems to be well received by the market; Potash rose 11.5% and Agrium 7.3%, on the back of this news.

On 30 August 2016, PotashCorp and Agrium Inc. confirmed that they are in merger talks. The combination of the two Canadian fertilizer companies could result in a giant market leader worth ~USD 30bn! The last few years have been a difficult period for fertilizer companies. Fertilizer prices have fallen significantly due to a slowing Chinese economy, weak farm income numbers since 2013 and the collapse of the Potash Cartel.A combination of PotashCorp and Agrium may provide some relief through cost reductions and a larger product offering. The transaction seems to be well received by the market; Potash rose 11.5% and Agrium 7.3%, on the back of this news.

Agrium / PotashCorp: Fertile Grounds for a Merger