Agrium selling U.S. plants to win American approval of PotashCorp merger

CALGARY Agrium Inc. (TSX:AGU) says it has sold two American assets to help win U.S. Federal Trade Commission approval of its merger with Potash Corporation of Saskatchewan Inc. (TSX:POT)

The Calgary-based fertilizer and farm services company says it has agreed to sell its Conda, Idaho, phosphate pro- duction facility and nearby mineral rights for about US$100 million, including working capital, to Torontobased Itafos (TSXV:IFOS).

It says it is also selling its North Bend, Ohio, nitric acid facility to a subsidiary of New York-based Trammo Inc. for an undisclosed amount.

Agrium CEO Chuck Magro says the sales will “pave the way” to complete the friendly merger with PotashCorp, expected to deliver $500 million in annual cost savings.

In September, the companies said their deal to create a combined company called Nutrien worth about US$36 billion would close several months later than expected due to competition concerns raised by regulatory bodies in Canada, the U.S., China and India.

Agrium says it will record an after-tax non-cash impairment of $178 million on the sale of the Conda plant, which represents its exit from the superphosphoric acid business in North America.

It says it has signed a longterm agreement with Itafos to supply all of the ammonia the plant needs and buy all of the monoammonium phosphate produced.