Deals
Blame Bad Timing: Potash-Agrium Deal Seen Facing Scrutiny
- Merger comes amid global wave of mega deals for agriculture
- ‘Some divestitures will certainly occur,’ analyst says
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It’s unlikely to be easy sailing when Potash Corp. of Saskatchewan Inc. and Agrium Inc. take their plans to combine and become the world’s top fertilizer company in front of regulators.
The blame lies with the timing, said Jonas Oxgaard, a New York-based analyst at Sanford C. Bernstein & Co. The Potash-Agrium merger was announced Sept. 12, just two days before Bayer AG clinched a deal to by Monsanto Co. after a months-long chase. Both are among a string of global mega deals that are likely to transform the agriculture industry, something that has sparked protests from farmers.