A global agricultural giant is one step closer to reality after Potash Corporation of Saskatchewan and Agrium agreed to merge.

The announcement came early Monday morning in a deal worth $36-billion US.

Talks between the two sides turned public in late August. The deal will see around 20,000 employees with operations in 18 countries.

Shares in PCS rose over two per cent on the Toronto market after news of the merger.

It has been predicted by analysts that a combined company between the two sides would be better to control fertilizer output, but may also lead to mine closures.

PCS has mines in Lanigan, Allan, Cory, Patience Lake and Rocanville. Agrium's lone operation in Saskatchewan is Vanscoy.