After an announcement last week that Yara and Terra have agreed on the sale of Terra to Yara. CF has now come back with the following take over option which tops the previous bid from Yara:
CF Industries Holdings Inc. said March 2 that it has offered to acquire Terra Industries Inc. for $37.15 in cash and 0.0953 of a share of CF Industries common stock for each Terra share. The offer has a total value of $47.40 per share based on CF Industries closing price on Monday, March 1, 2010. CF Industries has received $4.05 billion of financing commitments and the offer is not subject to financing. Morgan Stanley Senior Funding, Inc. has committed $2.8 billion and The Bank of Tokyo-Mitsubishi UFJ, Ltd. has committed $1.25 billion. CF Industries also announced that it intends to commence an exchange offer for Terra shares that will be scheduled to expire on April 2, 2010.
Agrium is still continuing to pursue it’s take over of CF. The only thing anyone know for sure is that the fertilizer world is about to get a lot smaller.
Continue to voice your concerns on fertilizer manufacture consolidation to your local MLA.
Tags: Bank of Tokyo-Mitsubishi UFJ, CF, consolidation, Morgan Stanley Senior Funding, Terra, Yara
Consolidation seems to be the reality of doing business today in agriculture. As companies become larger and there are less competitors surviving. Competing as an independent is a struggle and provides its own set of challenges.
Recently at the CAAR convention Dynagra was awarded the ag-retailer of the year award. Based in Beiseker Alberta, Dynagra is a family owned business that prides itself on independence and innovation.
Listen to an interview with Remi Schmaltz of DynAgra and Real Agriculture!
RealAgriculture.com would like to congratulate DynAgra on this award.
Tags: ag-retailer of the year, CAAR convention, consolidation, Dynagra, RealAgriculture.com
Agrium has been busy this summer and fall acquiring independent dealers from across Western Canada. Ross Agri (central AB), Heartland Agro (southern SK) and Servagro (southern AB) were acquired in the first round and just last week RTL Services (southern AB) and Cheyne Agri Services Ltd (southern Sask) have now fallen to the CPS brand (Crop Production Services Canada, CPS is a whole owned subsidiary of Agrium) giving CPS over 20 locations in Alberta in Saskatchewan. This is what I believe to be the start of a mass consolidation across Western Canada of the fertilizer industry. I believe there are around 120 Esso agents across the three Prairie provinces that Agrium is targeting to bring under the CPS umbrella. If Agrium is successful in acquiring CF Industries, Medicine Hat fertilizer plant included, both Agrium and Viterra would control all of the urea and phosphate manufacturing plants in Alberta. The world is getting pretty small out there. Keep open communication with your local independent and work together to make sure that Agrium and Viterra do not push out all of the competition in the market. It seems the giants are working pretty hard right now to make sure every last independent is either bought out or put out of business.
Tags: agrium, consolidation, phosphate, urea, VIttera
“Consolidation in the world’s fertilizer industry continues. Although the global economic collapse has left many traditional corporate raiders humbled, if not penniless, recent prosperity in the fertilizer industry continues to fuel consolidation. This blog will focus on the current skirmishes in North America which the press has characterized in a number of ways. A Wall Street Journal blog used the headline “Love Triangle”. Developing this theme we concluded that “Congo Line” might be a more appropriate handle, but we feared that both would have attracted the wrong attention. We finally settled on “Fertilizer Wars”, a concept originally used by The New York Times’s Deal Blog. Our goal is to provide a fair and balanced selection of press clips and links to timely articles on the current consolidation of the fertilizer industry in North America; with space for independent commentary from all segments of our industry.”
Tip Oneil
www.fertilizerwars.com
Tags: consolidation, Fertilizer
