July 24 Potash Corporation of Saskatchewan Inc
said on Wednesday that it would buy back up to $2
billion of its outstanding common shares, deploying its growing
free cash flow as it winds down a 10-year mine expansion
The company said it would repurchase five percent of its
stock over a one-year period. The announcement
comes about four months after Potash said it would hike its
dividend by 25 percent.
The Saskatoon, Saskatchewan-based company, which has the
largest capacity in the world to produce the crop nutrient
potash, expects to wrap up a 10-year, $8-billion expansion of
its Canadian potash mines in the next year.
Fertilizer rivals Mosaic Co and Agrium Inc
are also returning more cash to shareholders. Mosaic said in May
that it planned to use surplus cash to buy back shares, while
Agrium intends to buy back up to five percent of its stock.
Potash shares closed at $37.94 in New York and at C$39.17 in
Toronto on Wednesday.