Wednesday, September 24, 2014

Merger talks underway between fertilizer giants

Yara International ASA of Oslo, Norway, is in the early stages of merger negotiations with CF Industries Holdings Inc. of Deerfield, Ill.

Yara, which has annual sales of $13.4 billion and an international distribution network, wants to increase its presence in North America, mainly to gain access to cheap natural gas to manufacture nitrogen.

CF Industries, which has annual sales of $5.4 billion, wants access to the international markets Yara serves.

If they do merge, they would be the world’s second-largest fertilizer company, second to Potash Corp. of Saskatchewan.

Yara is a partner with BASF SE of Germany to build an ammonia plant at Freeport, Texas.