On 6 November 2017 The Ministry of Commerce of the People’s Republic of China (MOFCOM) conditionally cleared the proposed merger between Agrium Inc. and Potash Corporation of Saskatchewan Inc. after a review period of nearly 10 months. MOFCOM concluded that the proposed deal may have the impact of eliminating or restricting competition in the global and Chinese potash markets as the combined entity may directly or indirectly control around 50 per cent of global potassium chloride production after the merger. MOFCOM required a number of divestments and commitments to remedy those concerns. These require the combined entity to: (i) divest PotashCorp’s share in Israel Chemicals Limited (ICL), Arab Potash Company (APC) and Sociedad Quimica y Minera de Chile SA (SQM); (ii) not acquire any other competitors in the potash market without the prior approval of MOFCOM; and (iii) convert PotashCorp’s interest in a certain unnamed Chinese company into a restricted investment interest.
Similarly, on 18 October 2017 the proposed merger was approved by the Competition Commission of India on the condition that the parties commit to divest PotashCorp’s interests in ICL, APC and SQM within 18 months of the issuance of the clearance order. The proposed merger remains subject to final approval from the US Federal Trade Commission.