Potash Corp, Agrium shares halted on merger talks

Shares of Canadian Potash Corp. of Saskatchewan (TSX:POT), the world’s second-largest producer of the fertilizer, and rival Agrium (TSX:AGU) were halted Tuesday on the Toronto Exchange today, after reports said the firms were in an advanced stage of merger talks.

If successful, the imminent tie-up — to be announced as early as next week — could produce a fertilizer giant worth more than $30 billion, Bloomberg reported citing unnamed sources.

A global oversupply of the fertilizer has caused prices to tumble in the past year, leading to layoffs and mine closures across the sector.

Before trading was halted, PotashCorp stock had gained $2.40 or 11.48% to $23.30 on the day and Agrium was up $8.28 or 7.1% to $124.81.

More to come…

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