Potash Corp (POT)

Re: Potash Corp (POT)

Postby winston » Wed Aug 31, 2016 8:13 am

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Potash Corp, Agrium talk merger; competition scrutiny expected

Source: Reuters

http://www.reuters.com/article/us-agriu ... r%20Update
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Re: Potash Corp (POT)

Postby winston » Mon Sep 12, 2016 7:06 pm

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Potash Corp, Agrium to merge to create $36 billion company

by David Stobbe

(Reuters) - Canada's Agrium Inc and Potash Corp of Saskatchewan Inc said they would combine to create a fertilizer and farm retailing giant with proforma enterprise value of $36 billion.

Shareholders of Potash Corp, the world's biggest crop nutrient company by capacity, will get 0.400 common shares of the combined company for each share held.

Shareholders of Agrium, North America's largest farm retailer, will get 2.230 common shares for each share they own, the companies said on Monday.

Potash Corp shares were up slightly at $17.03 in premarket trading. Agrium shares, which closed at $95.21 on Friday, were not trading.

After the deal closes, Potash Corp shareholders will own about 52 percent of the new company, with Agrium shareholders holding the rest.

The combined company would have had 2015 net revenue of about $20.6 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.7 billion before synergies, on a proforma basis, the companies said.

The companies expect annual operating synergies of up to $500 million from the merger, which is expected to close in mid-2017.

Agrium Chief Executive Chuck Magro will lead the combined company. Potash Corp CEO Jochen Tilk will be its executive chairman.

The companies had said late last month that they were in talks to merge.

Source: Reuters
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Re: Potash Corp (POT)

Postby winston » Sat Oct 29, 2016 10:34 am

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Ag Stocks to Buy: Potash Corporation of Saskatchewan (USA) (POT)

The recovery in fertilizer prices can’t come soon enough for heavily-embattled Potash Corporation of Saskatchewan (USA) (NYSE:POT). POT is one ag stock that lives and dies by commodity valuations.

Company shares unsurprisingly hold a high 80% correlation with the potash market dating back to 1990. Even more remarkable, POT has a 90% correlation with DAP pricing. Wherever the smelly stuff goes, POT will follow.

Fortunately, things appear to be looking up for ag stocks. Between April through September of this year, monthly losses in the DAP spot price averaged 1%. In the six-month period prior to April, losses averaged 4%.

Subsequently, POT stock is also down roughly 4% YTD. That doesn’t sound like much, and I’m not trying to make it a bigger deal than it is. However, it’s a dramatic improvement from the 49% decapitation that POT endured in 2015.

Admittedly, ag stocks still stand on shaky ground. The problems affecting the industry are not going to disappear overnight. But in addition to the slowing decline of fertilizers, I think the proposed merger between POT and Agrium Inc. (USA) (NYSE:AGU) makes a lot of sense for both parties.

It’s an opportunity to join forces and make the most out of a challenging circumstance. It frankly is also a matter of necessity, a lesson the airline industry has taken to heart.

POT definitely leans on the speculative side, but with share prices hitting multi-year lows, it’s a bet worth looking into.

Source: Investor Place
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Re: Potash Corp (POT)

Postby winston » Wed Nov 02, 2016 7:31 am

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Buy This Recovering Agricultural Titan

By Karim Rahemtulla

Source: The Non-Dollar Report


http://nondollarreport.com/2016/10/agri ... ?src=email
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Re: Potash Corp (POT)

Postby winston » Fri Sep 22, 2017 2:59 pm

Stocks to Buy: Potash Corporation (POT)

Industry/Asset Class: Commodities

The merger between two of the world’s biggest agricultural companies received the blessing of the Canadian Competition Bureau Sept. 11.

Potash Corporation of Saskatchewan (USA) (NYSE:POT) and Agrium Inc. (USA) (NYSE:AGU) are up 8.5% and 8.1% respectively since the merger got the green light.

Potash shareholders will receive 0.4 shares in the new company to be called Nutrien for every share they currently hold in Potash while Agrium shareholders get 2.23 Nutrien shares for each Agrium share.

Overall, Potash shareholders will own 52% of Nutrien with Agrium shareholders holding the remainder. Together, Nutrien will have $20.6 billion in annual revenue and an enterprise value of $36 billion.

While analysts are skeptical that the merger provides any value for investors, the fact that Potash’s stock is down 10.3% annually over the last ten years suggests that buying its stock before the merger is a better idea than buying Agrium, whose shares have fared far better over the same period, up 9.4% annually.

A bet on Potash at this point is a gamble that the naysayers are wrong about Nutrien’s prospects.

Source: Investor Place
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