The merger of PotashCorp and Agrium to form Nutrien is being delayed as both India and China are asking PotashCorp to sell off some of its investments.

PotashCorp said that the disposals under consideration would not threaten the tie-up with Agrium. PotashCorp also owns 28% of Jordan-based Arab Potash Company, 32% of Chile-based SQM, 14% of Israel Chemicals (ICL) and 22% of China’s Sinofert and it is understood that the regulator has asked for three of these to be disposed.

A year ago, both companies agreed to merge, creating a $36bn fertiliser powerhouse, making it the world’s largest crop nutrient company. If Potashcorp held its shares in these companies it could have created the platform for future takeovers in some of them. This is now unlikely. Despite what it calls a “healthy demand for potash” in the second quarter, challenging market fundamentals and weak pricing continue to hurt profitability in PotashCorp’s phosphate business, which is expected to persist for the rest of the year.