Potash and Agrium agree merger to create fertiliser company with $20.6bn yearly revenue

Canadian fertiliser producers Agrium and Potash have said that the two companies will merge to create a crop company worth around $20.6bn in annual revenue.

The enterprise value of the new business will be about $36bn, and will encompass as many as 20,000 employees. Potash shareholders will control 52% of the new entity, with those in Agrium retaining 48%.

Potash, which is based in Saskatchewan, is the world's largest producer of fertiliser and stands to increase the stability of its business through the acquisition of Agrium's retail business, which sells fertiliser, seeds and other products.

The deal, which is scheduled to close in 2017, will give the new company a dominant position the North American market.

Fertiliser companies have struggled in recent times as the price of crop nutrients falls with supply outweighing demand.

Potash's US-listed shares were slightly higher on Monday in pre-market trading at $17.03.