Toppy soil

20 Jul 2015 By Kevin Allison

U.S. nitrogen giant CF Industries is sizing up $6 bln Dutch rival OCI. A combination could bring tax and other savings. CF got the timing right when it bought rival Terra in 2010. This time, prices are falling and new supplies arriving. The M&A enthusiasm looks excessive.

This content is for Subscribers only

Context News

U.S. fertilizer manufacturer CF Industries and Dutch rival OCI said on July 20 they are holding discussions about a potential deal.

CF shares gained almost 10 percent on July 17 following media reports of the talks, but declined nearly 6 percent after they were confirmed. OCI’s shares gained more than 12 percent in European trading on July 20.

The talks come less than a year after CF and Norway’s Yara International failed to agree on a possible $27 billion deal to merge.

In 2010, CF bought rival Terra Industries for $4.7 billion in cash and stock, topping an earlier Yara bid. That deal led Canadian rival Agrium to drop a separate $5.4 billion offer for CF.

Email a friend

Please complete the form below.

Required fields *