PotashCorp to Acquire a Stake in Fertilizantes Heringer

Potash Corporation of Saskatchewan Inc. (TSX:POT,NYSE:POT) announced that it has signed an agreement to purchase 9.5 percent of Brazil-based company Fertilizantes Heringer SA for US$55.7 million.

As quoted in the press release:

The agreement is subject to regulatory approvals in Brazil and is expected to close during the second half of 2015. Once finalized, the arrangement also paves the way for a long-term potash supply agreement which allows PotashCorp the opportunity to become Heringer’s principal supplier over time.

Jochen Tilk, PotashCorp’s president and CEO, stated:

The investment in Heringer provides PotashCorp with an important stake in a leading Brazilian fertilizer distribution company. We see this agreement as an important step in enhancing our global growth strategy and one that provides flexibility for our expanding New Brunswick operations.

Click here for the Potash Corporation of Saskatchewan Inc. (TSX:POT,NYSE:POT) press release