HOUSTON (ICIS)--Agrium has signed a definitive agreement to sell its phosphate production facility and adjacent phosphate mineral rights in Conda, Idaho, to Itafos for approximately $100m including working capital, the Canadian fertilizer producer announced on Tuesday.
In addition, Agrium has also entered into a definitive agreement to sell its nitric acid facility in North Bend, Ohio, to Trammo Nitrogen Products, a subsidiary of Trammo Inc.
The Conda facility and related assets include Agrium's entire superphosphoric acid business in North America, and the North Bend facility represents Agrium's entire nitric acid business in the Midwest region.
These divestitures are intended to address US regulatory concerns regarding Agrium's merger with PotashCorp and are subject approval from the US Federal Trade Commission.
As part of the sale of the Conda business, Agrium and Itafos will enter into long-term strategic supply and off-take agreements. Agrium will supply 100% of the ammonia requirements of Conda Phosphate Operations and purchase 100% of monoammonium phosphate (MAP) produced, with pricing formulas tied to benchmark phosphate fertilizer prices.
“The divestment of these assets will help pave the way for our merger with PotashCorp and the excellent line of sight to capture $500m in annual synergies,” said Chuck Magro, Agrium president and CEO.