Options were active on rumors of the discussions. The stock appeared -33.83% below its 52-week highs and is down -0.84% for the last five trades.
- Fertilizer makers Potash Corp. and Agrium say they are in talks to combine into one company.
Potash Corporation of Saskatchewan (USA) opened for trading at $16.04 and hit $16.22 on the upside on Monday, eventually ending the session at $16.05, with a gain of 0.06% or 0.01 points.
Potash Corp. shares were up $2.40 to $23.30 at the time of the trading halt - a jump of 11.5 per cent.
Bloomberg cited the sources as saying no final decisions have been made and the companies could reject a deal. (PotashCorp) (TSX: POT) (NYSE: POT) regarding a potential merger of equals.
"It does feel like a very likely deal". He said both firms are Canadian and their merger shouldn't face resistance from the Canadian government.
Potash Corp. abandoned a plan to take over German rival K+S AG previous year after its efforts were rebuffed by management amid regulatory concerns, and after the drop in potash prices prompted the Canadian company to rethink the economics of the deal. "These risks and uncertainties are discussed in more detail under the headings 'Risk Factors" and 'Management's Discussion and Analysis of Results and Operations and Financial Condition" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and in other documents and reports subsequently filed by us with the US Securities and Exchange Commission and the Canadian provincial securities commissions.
Potash is the third-biggest seller of the potash fertilizer, but owns the most capacity, some of which is idle due to industry struggles, Reuters said. PotashCorp is the world's largest crop nutrient company and plays an integral role in global food production.
The merger speculation lifted other stocks in the industry.
Roughly 1.89 million of Agrium's shares traded so far today compared to its average volume of 505,702 shares per day.
Shares of chemicals producer Huntsman (NYSE: HUN) briefly rose more than 2.5 percent in mid-morning trade.