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NEW YORK (TheStreet) -- Potash Corp. of Saskatchewan (POT)  and competing fertilizer company Agrium (AGU) yesterday confirmed that they have had discussions about a potential merger of equals. 

"It's a brilliant deal," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning. 

Potash has been a "terrible stock," but a combination of its "incredibly low-cost operations" and Agrium's "terrific network of retail stores" would create a one-stop shop that farmers would love, Cramer explained. 

Agrium has more than 1,400 retail outlets, allowing for a vertically integrated manufacturer fertilizer, he noted. 

"So it really is ideal together," Cramer stated.

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Shares of both of the Canadian companies were down this morning after surging in Tuesday's trading session. 

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.

Potash's strengths such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins are countered by weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

You can view the full analysis from the report here: POT

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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