Potash Corp & Agrium in Merger Talks
 

https://sec.theglobeandmail.com/repo...2/?service=amp

Thoughts?

Should be good for Saskatoon. More Potash Corp head office jobs. Loss for Calgary, although I imagine they will spin out the farm supply business and that may remain HQ'd in Calgary.

Potash Corp isn't that much bigger so I wouldn't believe anything they say about corporate headquarters staying put. CEO's have a tendency to not want to be located in Saskatchewan.

I would agree that there is definitely no guarantee that a head office for the combined merger would be in Saskatoon. That would be the best case scenario for Saskatoon (and Saskatchewan) but Calgary is definitely more of a "head office" type city. So, we could in fact see a downsize of corporate positions in Saskatoon. The Provincial government will have to work hard on this file to lobby for Saskatoon without being seen as interfering to much with the free market and private business. It will be very interesting....fingers crossed for a big boost to Saskatoon's corporate jobs! :fingerscrossed:

Who knows. As far as tax advantage goes Alberta still outpaces Sask. That being said, there may be some business advantages to Saskatoons proximity to other potash companies and those companies that help service the mines. Saskatoon is also a rather large hub for agriculture and related business as well. Not that Calgary isnt as well but it is overshadowed by the oil and gas industry.

My recollection is that there is a still a residual law that requires the Potash Corp head office to be in Saskatchewan. Brad Wall extracted additional commitments from Bill Doyle, at the time of the BHP takeover attempt, to follow the law in more than just naming the Saskatoon "the head office". Several executive teams were moved from Chicago and Doyle bought a condo in the Renaissance.

I cannot see Brad Wall easing up on this. The SK Gov't has an incredible amount of influence on these companies as all the mines are subject to SK regulation and taxation.

I can see the Agrium retail farm supply business being spun off. that might remain headquartered in Calgary.


https://www.saskatchewan.ca/governme...rom-potashcorp

I bet Triovest has already been on the phone with PotashCorp/Agrium telling them about their wonderful River Landing office towers... :haha:

Not a chance. Regina will offer up some prime real estate in Wascana Park for them to build on!

The question being asked on some twitter chatter right now is: if a brand new corporate entity is created, how does the legislative requirement for a PCS head office in SK then apply?


Let the courting begin!

Here's a little bit of info from Alberta's companies act

Section 90
Chapter C-21
COMPANIES ACT
69
Residence requirements
90
(1)
At least 50% of the members of the board of every company
shall be resident Albertans.

Also, the rules and legislative governance that kiboshed BHP Billiton's attempted take over of Potash Corp will not apply in this situation. As both are Canadian companies, there is no "test" as to how it will impact the 'local' economy. As stated in a reported article...there will be little the provincial government can do beyond strongly encouraging a significant presence to remain in Saskatchewan. One would hope that the history that Potash Corp has with its roots in Saskatoon (Sask), that it would look to find ways to stay in Saskatoon. But who knows....

Umm, I think that is from the 1970's.

The current legislation would be the Business Corporations Act which will have no AB residency requirement. Plus Agrium is not even incorporated in AB. It is Federally incorporated.

Sid 2014 on the document so don't know

But here is the link

http://www.qp.alberta.ca/documents/Acts/c21.pdf

read section 3.1

the linked Act is for non-profits I believe.

I believe you are right that Agrium is federally incorporated and that the office in Calgary is only registered there maybe that is good for Toontown.

Potash Corp & Agrium merger
 

For those who think this might be "good" for Saskatoon, one of the things I think people are overlooking is that this merger will probably result in the permanent closure of one or two mines, most likely in the Saskatoon area. The resulting permanent loss of mine-worker jobs will be a definite hit on the Saskatoon economy. Add to this the loss of potash related maintenance and industrial service type jobs, and I expect this will trigger lacklustre housing starts and lower house prices for Saskatoon in the not to distant future.

As for "head office" jobs, typically these are fewer in number than jobs for people who work at the mine. Therefore, any increase in head office administration will not make up for lost mine-worker's jobs. However, I sincerely doubt that there will be an increase in head office jobs, as duplication will result in further cuts. Furthermore, I would imagine the combined company will keep both a Calgary and a Saskatoon office open in the short-term, with most jobs eventually ending up in Calgary, as those who are employed in Saskatoon ultimately retire or leave the company.

Lastly, if I'm not mistaken, Agrium was once based in Saskatoon, in the old CN Tower above the Midtown Shopping Centre, but it made the choice to relocate its offices to Calgary. I'm not sure that the current leadership in Saskatoon has the "economic savvy" to be able to ensure that Potash Corp/ Agrium jobs remain in Saskatoon - especially if one looks at the dismal record this administration has had when it comes to attracting ANY head office jobs to the city.

Economically for Saskatoon, I hope this works out for the best, but in this case I would think Saskatoon's loss will be Calgary's gain (or maybe even Regina's gain, as one poster hinted).

Agrium footprint
 

A possible plus would be a direct flight between Saskatoon and Denver :frog:

From http://www.agrium.com/en/2-competiti...ings-stability

http://www.agrium.com/sites/default/...k_map-2016.png

Agrium only has one mine . This is unlikely to result in any mine closures unless they were going to happen anyway. Saskatchewan offers significant royalty incentives for head office potash jobs that Alberta cannot offer.

I don't see how this WON'T result in at least one mine closure - likely a PCS-owned one. Production must go down in order to prop up the price, no other way to do it.