US CF Industries to Consider Agrium $3.6bn Offer
HOUSTON (ICIS news)--Fertilizer producer CF Industries said on Wednesday that it would consider rival Agrium’s $3.6bn (€2.8bn) proposal to acquire all of the capital stock of CF for cash and Agrium shares at $72 per CF share
“CF Industries’ board of directors will evaluate the proposal carefully in the context of CF Industries’ strategic plans to create shareholder value, including its offer to acquire Terra Industries,” the company said in a statement.
Agrium’s proposed plan is contingent on CF dropping its takeover bid for Terra Industries.
“The board will make its determination regarding Agrium’s proposal in due course,” CF said.
Under the terms of Agrium’s proposal, stockholders of CF would receive one Agrium common share and $31.50 in cash for each CF share.
“We believe the proposed plan for CF faces no regulatory hurdles and could close in 90 days,” said Agrium CEO Mike Wilson in a conference call with shareholders and analysts.
Wilson said adding CF’s North American nitrogen, phosphate and crop nutrient distribution assets to Agrium’s global wholesale and retail capabilities would enhance Agrium’s existing portfolio and “enable us to create a premier global franchise across the entire agricultural value chain”.
The combined companies would have revenues of nearly $14bn and triple Agrium’s phosphate and urea ammonium nitrate (UAN) capacity, Wilson said.
Wilson added that Agrium expected to realise annual operating synergies of approximately $150m from the combination within three years.
Shares of CF were trading at $62.75, up 13% from the previous day’s close at midday on the New York Stock Exchange.
Shares of Agrium were trading down about 7% at $37.39.
“CF Industries’ board of directors will evaluate the proposal carefully in the context of CF Industries’ strategic plans to create shareholder value, including its offer to acquire Terra Industries,” the company said in a statement.
Agrium’s proposed plan is contingent on CF dropping its takeover bid for Terra Industries.
“The board will make its determination regarding Agrium’s proposal in due course,” CF said.
Under the terms of Agrium’s proposal, stockholders of CF would receive one Agrium common share and $31.50 in cash for each CF share.
“We believe the proposed plan for CF faces no regulatory hurdles and could close in 90 days,” said Agrium CEO Mike Wilson in a conference call with shareholders and analysts.
Wilson said adding CF’s North American nitrogen, phosphate and crop nutrient distribution assets to Agrium’s global wholesale and retail capabilities would enhance Agrium’s existing portfolio and “enable us to create a premier global franchise across the entire agricultural value chain”.
The combined companies would have revenues of nearly $14bn and triple Agrium’s phosphate and urea ammonium nitrate (UAN) capacity, Wilson said.
Wilson added that Agrium expected to realise annual operating synergies of approximately $150m from the combination within three years.
Shares of CF were trading at $62.75, up 13% from the previous day’s close at midday on the New York Stock Exchange.
Shares of Agrium were trading down about 7% at $37.39.
source: www.ICIS.com
