CALGARY, Alberta -- Agrium Inc. announced late Friday it has reached an agreement with Royster-Clark Ltd. on certain matters relating to Agrium's offer to purchase all outstanding Royster-Clark Income Depositary Securities for $10 (Canadian) cash per IDS.



Royster-Clark has agreed to withdraw its application before the Ontario Securities Commission alleging certain deficiencies with respect to the Agrium offer.



Agrium and Royster-Clark have agreed that Agrium will extend the expiry time of its bid until midnight (Vancouver time) on January 12, 2006, and Royster-Clark will waive the application of its rights plan to Agrium's bid at that time. As a result, Agrium will also withdraw its application before the Commission concerning Royster-Clark's rights plan.



"I am pleased that we were able to come to an agreement with Royster-Clark on these outstanding issues," said Mike Wilson, Agrium president and CEO. "As a result of the constructive manner in which this agreement has been reached, Royster-Clark unitholders will be able to give our cash offer full consideration."



Agrium will file and deliver a formal notice of extension of its offer by early next week.



Agrium Inc. is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North and South America. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients.



SOURCE: Agrium Inc. via Business Wire.