WINNIPEG, Manitoba - Canadian fertilizer companies Agrium Inc <AGU.TO> and Potash Corp of Saskatchewan Inc <POT.TO> said on Tuesday they are in talks to merge, in what would be a tie-up of the world's biggest crop nutrient company by capacity and North America's largest farm retailer.
Agrium and Potash Corp said in separate statements that the talks were at a "preliminary" stage regarding a possible merger of equals, adding that no agreement has been reached.
U.S.-listed shares of Potash and Agrium rocketed up 13 and 8 percent respectively, before being halted for the companies' statements.
Fertilizer companies have suffered lower profits as prices of crop nutrients, especially potash, have tumbled to multi-year lows due to excessive supply and weak demand, tied partly to softer currencies in buyer markets such as Brazil.
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The talks were first reported by Bloomberg.
