• FILE - This 2007 file photo shows the Rocanville potash mine owed by the Potash Corporation of Saskatchewan Inc., in Rocanville, Saskatchewan, Canada. Potash Corp. and Agrium said Monday, Sept. 12, 2016, that they are combining to create a new Canadian fertilizer company. A name for the new company will be announced before the deal closes in the middle of 2017.  (Troy Fleece/The Canadian Press via AP, File)

    FILE - This 2007 file photo shows the Rocanville potash mine owed by the Potash Corporation of Saskatchewan Inc., in Rocanville, Saskatchewan, Canada. Potash Corp. and Agrium said Monday, Sept. 12, 2016, that they are combining to create a new ... Canadian fertilizer company. A name for the new company will be announced before the deal closes in the middle of 2017. (Troy Fleece/The Canadian Press via AP, File) (The Associated Press)

  • This Wednesday, May 7, 2014, photo shows Agrium's headquarters in Calgary, Alberta, Canada. Potash Corp. of Saskatchewan Inc. and Agrium said Monday, Sept. 12, 2016, that they are combining to create a new Canadian fertilizer company. A name for the new company will be announced before the deal closes in the middle of 2017. (Larry MacDougal/The Canadian Press via AP)

    This Wednesday, May 7, 2014, photo shows Agrium's headquarters in Calgary, Alberta, Canada. Potash Corp. of Saskatchewan Inc. and Agrium said Monday, Sept. 12, 2016, that they are combining to create a new Canadian fertilizer company. A name for the ... new company will be announced before the deal closes in the middle of 2017. (Larry MacDougal/The Canadian Press via AP) (The Associated Press)

Potash, Agrium to combine and create new fertilizer company

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Potash Corp. and Agrium say they are combining to create a new Canadian fertilizer company.

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A name for the new company will be announced before the deal closes in the middle of next year.

The new company will have 20,000 employees and have a market value of $36 billion, the companies said.

As part of the deal, Potash shareholders will receive 0.4 of a share of the new company for every Potash stock they own. Agrium shareholders will receive 2.23 shares of the new company for every Agrium stock they own.

After the deal closes, Potash shareholders will own about 52 percent of the new company and Agrium shareholders will own about 48 percent.

Potash Corporation of Saskatchewan Inc. and Agrium Inc. are both based in Canada.