Just when things were starting to get really interesting in the fertilizer takeover game, it looks like it has now all come to an end:
Agrium has announced that they will be dropping their pursuit to take over CF Industries. Also meaning the sale of half of the Carseland nitrogen facility to Terra will be off the table since it was dependant on Agrium taking over CF.
Yara has stated that they won’t increase their bid for Terra. They have until March 17th to place a counter offer for Terra otherwise CF will move ahead as the clear winner.
This is good news for the Western Canadian market. For growers and retailers it means that we won’t be losing a supplier in the market. CF industries doesn’t own any retails in Western Canada. They are dependant on the retail network to sell their product in Western Canada.
Tags: agrium, Carseland, CF Industries, nitrogen, Terra, Yara
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
