CF Industries Seeks To Buy Terra Industries
CF Industries Holdings, Inc. has proposed to acquire all of the outstanding common shares of Terra Industries Inc., in a transaction that would create a leader in the global fertilizer industry.
January 27, 2009
"The combination of CF Industries with Terra will create a leading fertilizer producer with enhanced ability to compete globally," says Stephen R. Wilson, chairman, president and CEO of CF Industries. "North America is an attractive agribusiness market with an ongoing need for strong global players domiciled here. We believe that the companies together will form a stronger, more competitive global player that can service more customers, more efficiently."
On a pro-forma basis, the combined company will be the largest nitrogen producer in the world among publicly traded companies as measured by production capacity, according to a Business Wire press release.. The companies' complementary footprints will safeguard operating jobs, while increasing geographic reach in the important U.S. grain belt as well as expanding sourcing from international locations. CF Industries and Terra together will create a more stable platform for future growth, enhancing the viability and continuity of the North American nitrogen production industry, which has seen rising imports in recent years. Together, CF Industries and Terra would be better positioned for growth with a stronger balance sheet, increased flexibility to access the capital markets, and the enhanced ability to weather difficult market conditions.
Terra's Board of Directors will consider and evaluate the proposal and will pursue the course of action that is in the best interests of Terra and its shareholders, according to a Terra press release.
(Sources: Business Wire, Terra Industries)