If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.



IMC, Cargill Merge Crop Nutrient Business

by Marc S. Reisch
February 2, 2004 | A version of this story appeared in Volume 82, Issue 5

IMC Global and agribusiness giant Cargill have signed a definitive agreement to combine their phosphate, potash, and nitrogen assets to create the second largest global fertilizer operation, with $4.1 billion in annual sales.

When the deal closes later this summer—subject to regulatory approval—the new, as-yet-unnamed publicly owned company will be larger than number three Potash Corp. of Saskatchawan, with estimated annual sales of $2.6 billion. Number one Yara, the Norsk Hydro fertilizer business to be spun off to shareholders later this year, has sales of about $4.9 billion.

In return for two-thirds of the new firm’s shares, Cargill is to contribute its fertilizer operations with $2 billion in sales and $50 million in debt. IMC turns over a business with $2.1 billion in sales and $2.1 billion in debt. IMC shareholders will own one-third of the new firm, which is to be headed by Fritz Corrigan, now Cargill executive vice president.

For IMC, the merger means allying with a strong partner after years of losses caused by industry overcapacity and a farm recession. Executives say the fertilizer industry is poised for a recovery.

For Cargill, the largest U.S. privately held firm, the deal means enlarging its position in fertilizers at the expense of going public—the first time an operation of the secretive family-owned business will be open to public scrutiny.


This article has been sent to the following recipient:

Chemistry matters. Join us to get the news you need.