Agrium-PotashCorp deal may adversely impact competition: CCI

The CCI has sought public scrutiny of the proposed merger of Canadian firms Agrium and PotashCorp after "prima-facie" concluding that the deal might adversely impact competition.
This is the second time this month that the Competition Commission of India (CCI) has sought public scrutiny of a mega deal after the proposed Dow Chemical Company-DuPont transaction.
Agrium Inc and Potash Corporation of Saskatchewan Inc are Canada-based companies. Agrium is a producer of crop nutrients and a direct-to-grower distributor of crop inputs, services and solutions.
PotashCorp produces and supplies fertilisers and related products.
"The Commission is of the prima-facie opinion that the proposed combination is likely to have an appreciable adverse effect on competition," an official release said today.

Already, the two entities have made public details of their proposed deal as part of the scrutiny process directed by the CCI.

The public notice is to bring to the "knowledge or information of the public and persons affected or likely to be affected by the proposed combination", the release said.
While both firms do not have a physical presence in India, they are shareholders in Canpotex -- which sells potash to Indian purchasers.
PotashCorp also has minority interests in companies -- Israel Chemicals Ltd, Sociedad Quimica y Minera de Chile and Arab Potash Company -- which sell potash to Indian purchasers, as per details provided in the public notice.

"Through the proposed combination, Agrium and PotashCorp intend to merge their operations into a new entity New Parent.
"Accordingly, control of Canpotex, currently divided equally between its three shareholders viz, PotashCorp, Agrium, and Mosaic would, post transaction, be exercised by New Parent and Mosaic," the release said.
Earlier this month, CCI had sought public scrutiny of the proposed combination between Dow Chemical Company and E I du Pont de Nemours and Company.