個案資料

<p align="justify">On Monday, September 12, 2016, the president and chief executive officer (CEO) of Agrium Incorporated announced a merger of equals: to combine Agrium with Potash Corporation of Saskatchewan (PotashCorp). Agrium, based in Calgary, Alberta, and PotashCorp, based in Saskatoon, Saskatchewan, were Canadian neighbours and direct competitors in the fertilizer industry. The two companies were structured differently, with Agrium having a strong focus on the retail market and a mixed approach to the three major fertilizer components. PotashCorp focused primarily on mining and production of fertilizer materials, especially potash (potassium fertilizer).<br><br\>The proposed all-stock merger would create the largest crop-nutrient company in the world and third-largest natural resource company in Canada. While the two companies’ boards of directors had approved the merger, the deal still had a number of hurdles to overcome, including regulatory scrutiny over the resulting control of 60 per cent of North America’s potash capacity, shareholder approval, and the go-ahead from the Canadian courts. In addition, there was no guarantee that the proposed US$500 million in annual synergies from the merger would be realized. Was the merger the best decision for Agrium, or were there other, better options? Were the current terms of the merger good for Agrium? What were the key factors to consider to ensure operating synergies were realized? What would Agrium need to do to close the deal?

This case is well suited for a mid to advanced undergraduate- or graduate-level course that deals with strategy, mergers and acquisitions, industry life cycles, commodities, company culture, and operations. The case primarily deals with qualitative issues. After working through the case and assignment questions, students will be able to<ul><li>consider corporate strategy and management of a corporate portfolio;</li><li>discuss how organizations can create shareholder value in a mature industry and determine creative alternatives;</li><li>identify risks of large mergers and acquisitions, incorporating the value chain;</li><li>discuss synergy requirements when combining operations or companies; and</li><li>recognize the impact that culture has on a company’s operations.</li></ul>

• M&A
• mergers
• acquisitions
• corporate culture
• mature markets
• cyclical industry