As the Bayer/Monsanto merger dominates the news, it’s easy to miss the impact of smaller deals. But in a year of tight budgets, it’s important for farmers to pay attention to even the smallest buyout.
One such merger is between Canadian fertilizer giants Agrium and Potash Corp. The companies have a combined 20,000 employees and nearly $21 billion in annual revenue.
“The $36-billion U.S. deal will create a massive player in the fertilizer industry. National Bank Financial says the merged firm, if approved, would control almost two-thirds of potash capacity in North America, 30 per cent of phosphate production capability and 29 per cent of nitrogen capacity,” the Canadian Broadcasting Corporation (CBC News) reports.
In addition, CBC News reports Terry Boehm, farmer and chair of the National Farmers Union’s seed and trade committee, questions if consolidation of this size could lead to higher prices and fewer opportunities for price negotiation.
Read more about what farmers should expect in this pending fertilizer merger from CBC News here.