The Competition Commission of India (“Commission”) is, currently, assessing a proposed combination for which a notice has been filed by Agrium, Inc (“Agrium”) and Potash Corporation of Saskatchewan, Inc (“PotashCorp”). 

The Commission is of the prima facie opinion that the proposed combination is likely to have an appreciable adverse effect on competition and, accordingly, has directed Parties to publish details of the same to the knowledge or information of the public and persons affected or likely to be affected by the proposed combination.

 Parties have already published the details of the proposed combination in all India editions of four newspapers viz., The Business Line, The Business Standard, The Indian Express and The Financial Express on 24.03.2017 and hosted the same on their websites. The said details are also available on the website of the Commission (www.cci.gov.in).

 As per the provisions of sub-section 3 of Section 29 of the Act, the Commission invites comments/objections/ suggestions in writing, from any person(s) adversely affected or likely to be affected by the proposed combination.  The same may be addressed to the Secretary, Competition Commission of India, Hindustan Times House, 7th Floor, 18-20, Kasturba Gandhi Marg, New Delhi – 110001 or sent through email: [email protected], within fifteen working days from the date of publication of details of the proposed combination.

 Agrium, a Canadian corporation, is a producer of crop nutrients and direct-to-grower distributor of crop inputs, services, and solutions. PotashCorp, also a Canadian corporation, produces and supplies fertilizers and related products. Neither Agrium nor PotashCorp has any physical presence in India and none of these sell potash directly in India.  However, both Agrium and PotashCorp are engaged in supply of potash in India through their joint venture company i.e. Canpotex. Canpotex is jointly held by Agrium, PotashCorp and Mosaic.  In addition, PotashCorp also has minority interests in other companies (i.e. Israel Chemicals Limited or “ICL”, Sociedad Quimica y Minera de Chile or “SQM”, and Arab Potash Company or “APC”) which sell potash to Indian purchasers.

 Through the proposed combination, Agrium and PotashCorp intend to merge their operations into a new entity i.e. New Parent. Accordingly, control of Canpotex, currently divided equally between its three shareholders viz, PotashCorp, Agrium, and Mosaic would, post transaction, be exercised by New Parent and Mosaic.

Appreciable adverse effect on competition prompts public consultation on proposed merger affecting potash supply via Canpotex joint venture. The Commission considers the Agrium-PotashCorp combination likely to have an appreciable adverse effect on competition concerning potash supply to India and has invited written comments from affected persons within fifteen working days after publication. Parties published transaction details in national newspapers and online. Both foreign parties supply potash to India indirectly via the joint venture Canpotex and minority stakes in other suppliers; the proposed merger into a New Parent would consolidate control over Canpotex alongside Mosaic, prompting the Commission's consultation.