NEW YORK (TheStreet) -- Shares of Potash (POT) were soaring 11.03% to $17.82 on heavy trading volume early Tuesday afternoon after Agrium (AGU) confirmed that it is in preliminary discussions with the company about a possible merger.

Shares of Agrium were spiking 6.08% to $94.92 on heavy trading volume this afternoon.

"No decision has been made as to whether to proceed with such a combination, no agreement has been reached, and there can be no assurance that any transaction will result from these discussions," Agrium said in a statement.

Earlier today, Bloombergreported that the two companies were planning to merge, citing sources. The sources added a deal could be announced as soon as next week.

Canada-based Potash is a fertilizer company which produces various primary crop nutrients, such as potash, nitrogen and phosphate. Agrium is a producer and distributor of agricultural products and services headquartered in Calgary.

About 16.4 million of Potash's shares changed hands so far today vs. its average volume of 9.23 million shares per day.

Roughly 1.89 million of Agrium's shares traded so far today compared to its average volume of 505,702 shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on Potash stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins.

But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Recently, 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 articles's author.

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

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